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Posts Tagged ‘bad credit auto leads’

Bad Credit Auto Leads: An Easier Catch Now

Posted on: August 6th, 2012 by credit

Are you sure you’re still catching up? More and more dealers are realizing that there is much profit in special finance lending—by simply acting as the third party to get people with bad credit financed or by directly providing them financing. Here are some facts to convince you that special finance is a where the most fish are right now.

A recent study by CNW Research showed that subprime buyers account for more than 20% of the total used-vehicle sales in July 2012. Meanwhile, the average credit scores for new cars and used cars dropped to 760 and 659, respectively, in the first three months of 2012, according to an Experian Automotive study. This means that more people with lower credit scores are getting approved for auto loans. The study also found that the number of loan programs offered to bad credit auto leads rose by 11%. It also showed that people borrow almost $26, 000 and more than $17, 000 at average for new car purchase and used car purchase, respectively.

These trends in the special finance arm of auto lending is fueled by the decline in loan delinquencies, according to some experts. The rates dropped by 7.6% and 12.1% for people who are 30 days and 60 days late, respectively. Vehicle repossession also dropped by 37%. These make special financing easier for lenders and dealers. On the other hand, as banks and other lenders offer lower interest rates and monthly payments, people with bad credit are gaining more confidence to take auto financing.

With these in mind, what should you do now to keep up with the competition? Here are some insights from experts:

It’s important to have the right process, the right sales team, the right inventory, and the right lenders to convert bad credit auto leads into sales. Firstly, having the right process involves doing away with the notion that when a lead does not meet your criteria, it shall be treated as chaff. Realize that there are many car shoppers who have bad credit who are still serious about buying a car and rich enough to make consistent payments.

Secondly, you must have a special finance department where your sales team are trained and experienced in negotiating with bad credit auto leads. Your sales team should understand their needs and dilemma to effectively turn them into sales.

Thirdly, if you are offering special financing, make sure you have the right inventory for it. There must be car models from 2001, for example, or those that are worth at least $8, 000, available in your car lot.

Lastly, you should have a network of lenders who are willing to buy special finance papers. And remember: Focus on helping your prospects get financed and not get the car that they want.

Bad Credit Auto Leads Are Valuable Too

Posted on: May 30th, 2012 by credit

Auto dealerships need to meet a certain amount of sales in order to stay in business. They will not be able to do this if they rely solely on walk-in clients. To look for potential clients, they often rely on auto leads so they can market their products to them. However, these auto leads are sometimes focused only on a specific group of people, namely, people who have good credit scores.

The economy is terrible these days. According to FICO, a huge number of Americans have poor credit scores. People who have poor credit scores cannot get auto loans through traditional means. However, this does not mean that these people are no longer interested in buying cars. It does not also mean that they do not have the capacity to pay for a new car. On the contrary, people with bad credit can get their auto financing from lenders that specialize in dealing with people like them. There are a number of reasons why a person has a bad credit score and in most cases, people with bad credit do whatever they can to change this. Auto dealerships must recognize that there is a gold mine among Americans with bad credit. They can look for these people by using bad credit auto leads.

Auto dealerships can hire companies that specialize in generating bad credit auto leads. These companies have a huge database of people who bought cars before or are interested in buying cars in the near future. Companies that specialize in these kinds of leads usually get their information from bad credit auto loan lenders. These companies can also provide other information such as age, gender and location as well. If auto dealerships combine both regular auto leads and bad credit auto leads, they can reach a bigger audience which translates to a higher profit margin for them. They should not be wary of getting people with bad credit as their customers even if at first it seems like a bad idea. People with bad credit are still potential customers and once they get funding from a lending institution, they are more than willing to buy a car.

When hiring a lead generator company, auto dealerships must make sure that these bad credit auto leads are generated in real time and are not outdated. A quality auto lead is usable and can guarantee a sale. They can look for bad auto lead generator companies online.

Why Bad Credit Auto Leads are An Asset for Auto Dealers

Posted on: February 17th, 2012 by credit

 

It is common to hear about people who wanted to purchase a vehicle but were unable to qualify for an auto loan.  The reason why such individuals fail to get auto financing from lenders is because of bad credit.  Traditional lenders in particular only accommodate those with good or excellent credit because they are considered as low credit risks.  They risk more by lending to bad credit borrowers who have a history of not settling debts or making payments on time because there is always the possibility that the loan will not be settled.

If there is such a high risk in lending to credit-challenged borrowers, why is it that auto dealers wish to obtain bad credit auto leads?  Why do they even want to have customers with flawed credit? The answer is simple: such leads are the key to more sales, and this is why they are an asset.

The reason why there are only a few people walking into dealerships is because many prospective auto buyers are being turned down by lenders.  Dealers have less customers because those who want to buy are unable to pay for their desired vehicle.  The customers may be interested in buying, but they cannot proceed with the purchase without an auto loan.  Due to the recent recession, many people encountered financial difficulties, which negatively affected their credit.  Though the economy is recovering, many have yet to improve their credit situation.  This means that there are a lot of prospective customers out there who could have created a sale for dealers but could not.  If only these people were given auto financing, dealers would not have a problem reaching—or even exceeding—their monthly sales target.

Many auto dealers buy bad credit auto leads because they want to seize the opportunity to boost their sales.  They take it upon themselves to provide the financing just so the consumers can buy.  If they reach out to people with bad credit and offer financing for their preferred vehicle, they have higher chances of successfully closing a deal and making a sale.  With the number of credit-challenged prospective auto buyers, it would be easy for dealers to significantly improve their profit margins.  Of course, before an auto dealer is able to turn leads into sales, the dealership has to have a special finance department that would find sub prime lenders to finance the auto loans of the bad credit borrowers.  The auto dealer must prepare loan packages specifically designed for those with poor or damaged credit.  Otherwise, the bad credit borrower would still be unable to buy a vehicle.

Approved Auto Leads is an online lead generator that sells bad credit auto leads to auto dealers.  This lead company guarantees better sales for its client dealers because it only sells real time and exclusive leads, that which has greater chances of sales conversion.  Indeed, auto dealers double its chances of having more sales by getting bad credit leads and getting it from Approved Auto Leads.

There is Profit in Store for Auto Dealers with Bad Credit Auto Leads

Posted on: February 1st, 2012 by credit

 

Auto dealers that are struggling to stay in business during a financially difficult time should buy auto leads to create sales.  However, they should not just buy any type of lead; they must specifically find bad credit auto leads.  There is much profit in store for auto dealers who invest in this particular kind of lead.  If an auto dealer purchases such leads, there is even a huge possibility for the business to thrive despite the recession.

Bad credit auto leads are basically customers who are hoping to buy a vehicle but are unable to get auto financing through traditional means because of their credit situation.  Traditional lenders such as banks and credit unions are reluctant to loan money to people with low credit scores because their credit history reveals the inability to pay what is owed and pay it on time.  The only thing holding bad credit borrowers back from buying a vehicle of their own is their credit situation.  Hence, if bad credit borrowers are able to get auto financing despite their credit history, they would certainly make a purchase from auto dealerships.

What makes bad credit auto leads beneficial for auto dealers? The main advantage for auto dealers lies in the numbers of people with bad credit.  Right now, a significant percentage of the population is credit-challenged.  This means that many people have bad or poor credit.  This percentage includes a considerable number of prospective car buyers.  If the credit-challenged are unable to get auto financing, it follows that many auto dealers are also deprived of the opportunity to gain profit from plenty of customers.  Consequently, if bad credit car buyers are able to take out auto loans to buy their car of choice, auto dealers have the chance to improve their profit margins.

Basically, there is much revenue to be had from bad credit auto leads because many people have bad credit.  Access to more customers means more revenue.  If an auto dealer purchases these leads, it has the chance to contact a large number of prospective car buyers looking for a car and car financing.  Of course, having the leads is not enough to increase sales; it is up to the auto dealer to convert the leads into sales by making the right offers to the right people.

Auto dealers know how profitable having such leads can be, and all of them hope to gain from these leads.  To eliminate the competition, an auto dealer must purchase only exclusive auto leads.  It would be more challenging to convert leads into sales if the leads are accessed by a number of auto dealers.  With exclusive leads, only the auto dealer that purchased them can pursue the customers.  Auto dealers hoping to buy exclusive bad credit car leads should make sure that the lead generation company they buy it from sells real exclusive leads.

For more than a decade, Approved Auto Leads has been known for exclusive bad credit car leads.  The online lead generation company had earned the trust and continued patronage of many auto dealers because of the quality of the leads it sells.  Approved Auto Leads only sells high quality and exclusive leads, and this is reason enough for auto dealers to consider them as a prime source of prospective customers.

Bad Credit Auto Leads – Who Are They and What Can They Give You

Posted on: January 6th, 2012 by credit

Bad Credit Auto Leads A must have for every Dealership

 

Bad credit auto leads are sometimes deemed as people who are financially irresponsible and their poor credit management is what caused their situation.  However, these group of people does not totally comprise financially irresponsible individuals.  The effects of global economic recession has taken its toll to several people across the globe.  Some of the adverse effects are massive lay-offs, company foreclosures, and the like.  These factors are great contributors to the increasing number of people who are acquiring bad credit.  Because of these downgrades, a person would definitely find it hard to keep up with his or her payments. 

Having a bad credit affects them in several ways, especially with purchasing their needs.  A car, which most of them deem as a necessity, is not affordable now with their financial condition.  Most of them are repeatedly turned down by several loan companies.  Most of these people are desperate to get behind the wheel and do their jobs efficiently with own transportation means.  However, their bad credit hinders them from achieving this end.

Bad credit auto leads would exhaust all possible ways that they know to get an auto loan.  With the help of online loan companies and lead generation companies online, applying in different loan companies is not that stressful anymore.  They would simply have to shop around and drop in their applications to these websites.  Car dealers should be in a look out for this kind of leads if they want to boost up their sales and rev up their revenues.

How exactly would bad credit auto leads do that?  These people took the first step to drop in their application because they badly need a car.  They are now waiting for someone to respond to their application–maybe a call from the dealership or loan institute.  As already mentioned, most of them are quite desperate to get behind the wheel.  Thus, car dealers should know that these people are more willing to take a car loan and purchase a car sooner than other prospective car buyers do.  This also branches out to the fact that bad credit car leads have higher conversion rate than other regular auto leads have.  This is how car dealers can meet their sales target and increase their revenues.

Approved Auto Leads is a lead generation company that also provides its partners with bad credit auto leads.  These leads are pre-screened before sending them to the car dealers. Pre-screening is important to lessen the risks of bad credit.  This is what car dealers should also look for when buying bad credit car leads from lead companies.  Approved Auto Leads wants to make sure that it only sends out quality and genuine leads to their customers.

 
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