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How Prospective Auto Buyers Become Trigger Leads

Posted on: February 16th, 2012 by credit


Many auto dealers generate sales through trigger leads.  They make a profit by selling to people who are planning to buy a vehicle and have thus applied for auto financing.  However, most of these prospective borrowers have not approached any of the dealers themselves.  To understand how the auto dealers find their potential customers, one has to find out how prospective auto buyers become the aforementioned leads.

Prospective borrowers do not become trigger leads by choice.  The entire process occurs without their knowledge.  People who are about to buy a car or any other automobile usually apply for an auto loan to make the purchase.  Majority of auto buyers do not have the money to pay for the vehicle in full, so they seek financial assistance from lenders.  It is when the buyers apply for an auto loan that they become potential leads, and the credit bureaus are most responsible.

Whenever an individual submits an auto loan application, his or her credit report is pulled by the lender.  Lenders do this because they have to run credit checks to process the application.  They determine the borrower’s loan eligibility based on the credit report, which shows the individual’s history of repayment.  When an individual’s credit report is pulled by a lender, the credit bureau could enter the individual’s name and other details into the trigger lead database.  The borrower’s name and other personal information is that which becomes the trigger lead.  The credit bureau has the option to offer the information to third-party vendors, enabling them to sell the leads to interested parties such as other lenders and dealerships.  Approved Auto Leads is one online company that sells leads to its client auto dealers.  Once lenders and dealers obtain the leads from the vendors, they are free to pursue the individual and offer him or her a deal.

Since prospective auto buyers never know if and when they become trigger leads, being contacted by other lenders often catch them by surprise.  An individual who has applied for an auto loan at one particular lending institution can get a number of calls from different lenders and dealerships.  The borrowers are often puzzled as to how the companies found out that they were indeed in search of auto financing.

In some cases, being a trigger lead can be a bad thing.  Once lenders and dealers have the borrowers’ details, they are free to contact them.  Because some lenders or dealers are aggressive and persistent, borrowers tend to feel harassed.  However, being a trigger lead can be advantageous too.  It gives the prospective borrower more options in terms of auto financing, and he or she need not do anything. Borrowers need not search for offers because the offers would come directly to them.

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