Finance auto leads are not easy to pursue and to convert. Follow-up is a tiring task that would not even turn in good results sometimes. You may also be thinking that you could be wasting your time on following up leads instead of finding other leads with higher conversion rates. You may also feel like giving up on pursuing finance auto leads but, you should not lose heart; they will eventually turn into sales. How is that going to be possible?
Easier Access to Auto Financing
The latest report released by Experian this year says that automotive lending is becoming stronger, making auto financing easier for consumers. The report shows that the average credit score of consumers seeking auto financing fell to 760 for new car buyers and 659 for used car buyers. Moreover, automotive lenders and dealers have been offering lower interest rates. New cars and used cars are financed at an average of 4.5 percent and 9 percent, respectively. Loan terms are also longer now, allowing borrowers to make lower monthly payments.
According to Experian’s director of automotive credit, borrowers have been doing a good job repaying their loans in the past quarters and the percentage of dollars at risk is also now at its lowest in six years. This means that there is less risk for you now to deal with people seeking financing for their cars. Moreover, the report also highlights that there are lower numbers of loan delinquencies and auto repossessions. Thus, with auto loans made more available to consumers, it is then easier for them to say yes to your deal as long as you give them an irresistible offer.
More Competitive Offers
The fact is, and as other dealers have said, automotive lending has loosened up a bit and is getting more aggressive and competitive. Good loan terms are no longer confined to good credit borrowers. Banks, which had been the most unwilling lending institution to accommodate bad credit borrowers, are now becoming more aggressive, accommodating consumers with lower credit scores and offering them better terms and lower interest rates. Other lenders now also have zero interest and no money down loan programs. Moreover, old finance auto leads are now back in the market, as some dealers have observed, and with better loan terms, it is more certain that you could turn them into sales if you keep on pursuing them.
Numbers show that even if the automotive industry had experienced a crisis 2 years ago, lenders are now already back in the game of making money and they are doing it in a more competitive manner this time. Therefore, you have to keep pace with the competition and never lose those leads that you’ve already got by making your offers as competitive as possible.Tags: auto finance leads, auto leads, finance auto leads