Subprime auto leads are often deemed by dealers as more of a risky investment than sales opportunities. It is true that subprime auto leads, also called special finance leads, comprise of people who are credit-challenged and high credit risk, but it does not mean that they cannot bring more sales to dealerships like regular auto leads.
Although the global economic crisis has caused several businesses to close down, it ironically gives car dealers like you potential sales through people seeking financing. Because of the crisis, more and more people have been acquiring a bad credit, which makes buying a car a challenge for them. In effect, many car shoppers have already been turning to auto financing. Moreover, a lot of them are with low credit rating which makes it even harder for them to get approved for a loan and purchase a car. With the growing number of such type of car shoppers, special finance auto leads’ potential to increase a dealership’s sales seem to be overshadowing the perceived risks that dealers would face in dealing with them. In addition, there are many cases where these leads convert into sales more than regular auto leads do.
Dealers then have to change their attitude toward subprime auto leads. Most car dealers are hesitant to pursue such leads, perhaps because of a bad experience they had in financing bad credit borrowers before or they simply see them as not a potential market or the risks. However, some dealers say that dealers today should have a widened vision of special finance leads. They say that larger financial institutions are accommodating such leads so, it could imply that there is now less risk in dealing with such leads. Moreover, technology is an added advantage as it can help in managing and monitoring special finance leads.
Some dealers also say that the special finance market is growing and dealers have to be more open-minded to such opportunity. As has been mentioned, there is a growing number of people seeking special finance with the global economic crisis as a great contributor. As a dealer, you have to keep in mind that although borrowers with low credit have a less credible credit history, they were still once with good credit. In fact, there are cases where subprime car buyers buy premium cars instead of low model cars. In other words, subprime auto leads are profitable.
As a final note, don’t waste today’s opportunity with special finance leads and know the secrets of successfully turning them into salesâ€”have the right inventory, the right sales personnel, and the right system of managing and converting them.Tags: Subprime auto leads, subprime car leads, subprime leads