Subprime auto leads are often referred to as high risk and looked at as it non beneficial way to market. There is a reason subprime auto leads are also referred to as special finance leads.
Yes, subprime auto leads are credit challenged. Yes, they are a credit risk.
But that does not mean they cannot be financed.
In fact, they can bring just as many auto sales is regular leads, most times more.
America is only just now finding itself on the other end of financial crisis. This has left many people (including good buyers) with less-than-perfect credit. What was once a prime auto lead, is now looked at as a high-risk.
For many dealerships this is the group that makes up the majority of their buyers. Simply turning them away or ignoring them would result in bad business, or no business at all.
Dealers, (all dealers) have to change your attitude about subprime auto leads.
Most auto dealers are hesitant to chase after subprime borrowers.
Instead they prefer to chase after “easy money.”
But the truth is, in auto sales, easy money comes from volume. It definitely doesn’t come from cherry picking your ‘perfect lead.’
These types of leads have a high credit rating. They’ve built this rating and maintained it.
And they know it.
This makes them more likely to negotiate for a better deal because they know they have the leverage. These buyers are not the majority, they are the exception.
The majority of buyers have credit issues.
Understanding these leads can easily make you a volume dealership.
It is true that many dealerships have yet to adopt the proper type of special finance departments. But the ones who have, are already noticing big changes in their business.
Due to the sheer numbers in this market, many dealerships are finding it more profitable.
Another notable benefit to subprime borrowers, is the fact that lenders actually prefer them.
Dealerships with special finance departments have noticed great ease in growing their network of lenders. They remain to be profitable and lenders look at this profit as long-term.
This is more than a simple spike in profits.
Because of the financial crisis, lenders believe that there will be more subprime auto leads entering the market in large volume for many years to come.
They note this as new opportunity and long-term stability.
It’s true that it may require more work, but for long-term profits on a large scale, subprime auto leads seem to be the new honeypot.
Cater to them with the proper inventory and the proper sales funnel and you’ll be converting at a higher rate than ever before. Not to mention the practically endless stream of leads.
Contact us today and let us show you how.