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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.

Just Reminding You About Special Finance Conversion Basics

Posted on: July 31st, 2012 by credit

Special finance auto leads have been important for dealerships lately. They have been boosting the sales of many dealerships who have observed and believed that there is much profit from auto lending, especially to people with less-than-perfect credit. However, there are also several dealers who are missing the opportunity. Are you one of those dealers who have not yet experienced a significant increase in sales with special finance leads? Perhaps, it’s time for you to go back to the basics of converting special finance auto leads.

Avoid deceptive advertising. It’s simple. If you don’t have it, don’t make it seem like you have it. For example, don’t put up an ad that says you can finance anyone when you don’t even do buy here pay here financing. Many dealers resort to this kind of marketing practice just to get people step into their dealership or earn more cash. Instead, keep your advertisements effective but right and clear. Moreover, complying with dealership advertising rules will also earn your dealership more trust from your customers and prospects.

Contact and work on every lead. A lot of dealers focus too much on generating a lot of leads and spend insufficient time on converting them. Actually, lead conversion weighs heavier in importance than lead generation because it is what generates profit for you. Thus, make sure that your sales team and even you are actively responding to every query that comes in.

Follow up leads. Don’t give up on leads easily. Just because a lead didn’t respond positively to your offer or did not call you back anymore doesn’t mean that he or she is no longer interested. Unless a lead makes a decision, don’t cease to reach out. There are car shoppers who would really think about the deal over and take time looking at other options before finally buying a car from a certain dealership. Moreover, follow-up could make your leads consider your dealership as one of their options.

Make sure that you are getting quality leads. Special finance auto leads need more thorough verification and screening to minimize the risk for lenders and dealers. Lead providers should make sure that they meet the criteria you have set. To make sure that you are getting quality leads, ask your lead provider about the methods they use in generating leads and how they carry these out. The way marketing and lead generation strategies are executed affects the quality of leads they will produce. Make sure they use these appropriately and not abusively.

Getting Special Finance Leads From the Right Provider

Posted on: May 3rd, 2012 by credit

Special finance leads are a way for car dealers to meet their sales quota and make more sales. It is also a cheaper way for them to acquire more prospects. However, dealers have to make sure that they are buying special finance leads from the best provider.

First, car dealers should make sure that their prospective lead provider is already experienced in providing special finance leads for at least 5 years already. It must have a proven track record and a good reputation in the industry. Car dealers can request for a list of its previous clients as references. They can also check the Better Business Bureau or BBB database to further assess the reliability of their prospective lead provider. Things that they can find in BBB’s database are BBB accreditation, company review, BBB’s rating, and a summary of complaints of the lead provider. It is important that car dealers deal with a professional and reputable lead provider.

Second, car dealers should also know the various lead generation techniques that their prospective lead provider employs. This is also necessary in evaluating a lead provider because the way lead generation techniques are used impacts the quality of leads that will be generated by those techniques. If those techniques are used abusively and inappropriately, they would produce bad leads. Car dealers should also know if the lead provider buys special finance leads from a third party, which is often the case for this type of leads. Car dealers have to ask about how they make sure that they are getting quality leads from the third party.

Third, a good lead provider must have a screening process where the leads they obtain are verified and pre-qualified before delivering them to their clients. Approved Auto Leads is an example of a lead generation company that employs a screening process. If a lead provider pre-screens leads, car dealers can be sure that the leads they will receive are most likely of quality. They would not also have to spend time on qualifying the leads. Car dealers should not forget to ask their prospective lead provider about this.

Finally, car dealers must choose a lead provider that has no unreasonable and unnecessary fees and charges. There are many lead providers who have abusive terms and rates. To avoid such providers, car dealers should take some time comparing offers from different lead providers. They should remember not to go beyond their budget.

Car dealers must only buy special finance auto leads from the best lead provider. They can experience more success in their dealership if they are working with the right partner.


Do Special Finance Auto Leads Really Help Today?

Posted on: April 13th, 2012 by credit

Special finance auto leads are information of people who are seeking auto financing but could not get a decent loan offer because of their bad credit. These benefit both dealers and people with bad credit. Dealers can increase their sales by converting special finance auto leads into sales while helping people with bad credit by giving them a chance to get behind the wheel and improve their credit.

However, the automotive industry experienced a crisis in 2008 that lasted until 2010 following the global economic recession. The crisis was caused by the increase in prices of fuel which discouraged people in buying vehicles that are not fuel-efficient. Since there were few fuel-efficient vehicles available in the market, the sales of automotive industry sharply declined. This has also affected sub prime lending to the point that special finance leads and the special finance departments of dealerships seemed to be of no use anymore. Nevertheless, the automotive industry has been progressively recovering from the downturn and is now becoming more competitive.

Special finance auto leads have been a great help for dealerships before the crisis and even today. Auto dealers may face risks in dealing with people with bad credit but they can indeed boost their revenues if they successfully turn them into sales. People with bad credit are still potential customers for auto dealers. In fact, they are more likely to turn into sales because, in general, they are more serious and more interested in buying a vehicle than those with good credit. Auto dealers can also meet their sales quota while increasing their sales with special finance leads. Moreover, auto dealers can save more money on buying special finance leads instead of spending so much on mainstream advertisements which deals with a less specific target market. With special finance leads, auto dealers are able to gear their marketing efforts toward only a more specific target.

Special finance auto leads indeed help dealerships today in making more sales. Auto dealers just have to be wise in generating and buying special finance leads. Gathering this type of leads was not an easy job for auto dealers before especially with the absence of computers and the Internet. Today, they can easily buy special finance leads from lead providers like Approved Auto Leads. When buying leads, auto dealers should choose the exclusive type to ensure higher closing rate. Auto dealers should also check the legitimacy of the lead generation company they will be working with. Lastly, they should also ensure that the leads are of good quality. Special finance leads need more thorough verification and screening than other types of leads.

Special Finance Auto Leads

Posted on: February 1st, 2012 by credit


It is a fact that auto leads are advantageous for auto dealerships.  These can help them increase their sales by pursuing individuals who are truly in search of a vehicle and auto financing.  Special finance auto leads is one specific type of lead that can truly help auto dealers reach their monthly sales target.   However, this lead type does not only benefit the auto dealers that purchase them.  Being a special finance auto lead can also help any prospective car buyer who have bad or poor credit purchase a vehicle.

An auto lead is a prospective car buyer determined to buy a car and get an auto loan for the purchase.  The lead, which is sold by lead generators and purchased by auto dealerships, contains information about the potential customer: the name, address, contact details and the vehicle preference.  A special finance auto lead is just like a regular auto lead; the only difference is that the customer in question has bad or poor credit.  An individual with bad or poor credit usually find it difficult to obtain auto financing through traditional means because their credit situation renders them ineligible.  However, it must be noted that it is not impossible for people with bad credit to purchase a vehicle.  This is because there are a number of dealers that offer bad credit auto loans.

Prospective car buyers can benefit from being special finance auto leads because being a lead enables them to be contacted by auto dealerships that offer financing even to those with bad credit.  Bad credit borrowers may find the process of getting an auto loan challenging, but this would no longer be the case if they become leads.  Instead of shopping around and checking out each lender one by one to see if they accommodate bad credit borrowers, credit-challenged car buyers could give their information to lead generation companies.  The lead generators would then screen their application and sell their information only to auto dealerships that have loan packages specifically for bad credit borrowers.  In no time, a borrower can receive loan offers from auto dealers, and he or she becomes one step closer to   buying a car.

Meanwhile, auto dealers that invest on special finance auto leads can significantly increase their sales.  This is mainly because there are a lot of people who are credit-challenged.  Many of the people who are in search of cars and car financing have flawed credit.  It would be unwise for any auto dealer to alienate customers who want to purchase a vehicle but are hindered by their current credit situation.  If only these customers get the financing they need to buy a vehicle, they are sure to make the purchase.  Hence, auto dealers that assist bad credit car buyers with auto financing would definitely make a profit.

Auto dealers that wish to increase their revenue should consider getting their special finance auto leads from a lead generating company such as Approved Auto Leads.  A top provider of auto leads for more than ten years, the company offers only real time and exclusive leads—those that boost the chances of sales conversion.  Hence, if there is one company auto dealers should buy their leads from, it should be Approved Auto Leads.

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