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Posts Tagged ‘Subprime auto leads’

Assessing Subprime Lead Generation for Better Subprime Sales

Posted on: September 17th, 2012 by credit

According to the latest report released by Experian Automotive, loans to borrowers with damaged credit in the second quarter this year increased by 14 percent compared to the same quarter last year. Perhaps, this shows that more lenders or dealers have realized that subprime lending is very lucrative; plus, there is a considerable size of market.

Currently, the demand for sub prime auto leads generated by online lead generation companies like Approved Auto Leads have increased as more car shoppers with bad credit continue to inquire about the amount they can borrow. Sub prime auto leads are obtained when a car shopper starts researching online about how much he can borrow for a car purchase and, in request for that information, provides his contact details and other information which allows dealers to contact and follow up on them.

With this in mind, are you sure you are pulling off your subprime lead generation system? Are you still keeping up with the competition? Take a good look at some of the lead gen aspects discussed below:

Landing Page

The landing page is important for turning your consumers into sub prime auto leads; or, in other words, it plays a major role of converting a visitor into an interested and potential customer. A very important element of a landing page is a call-to-action. The call-to-action is a phrase or statement that expresses action for your visitors to do. It must be clear, telling prospects to do only one thing. It also has to be prominent in your page. Calls to action must be compelling, conveying some sort of sense of urgency.

Lead Generation Company

Many dealers today are turning to lead generation companies like Approved Auto Leads that employ online lead generation techniques to acquire more leads. If you are working with one right now, make sure you are working with the best partner. See if you are getting real and quality leads. If you are just planning to work with one, make sure that the company is legitimately operating and has considerable experience in generating subprime leads. Working with the right lead provider makes your lead generation system more effective.

Response Time

Regardless of where the leads are coming from, responding to their queries quickly is crucial. You are in a fast-paced competition and it is getting more and more aggressive. Your competitors will get to your leads first if you are too slow. Make sure you have an effective system of responding to and following up on your leads. Don’t let them get snatched away by your competitors who are more aggressive than you. You wouldn’t see significant improve in your sales if you don’t keep pace with the competition.

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.

Subprime Auto Leads: From Precarious To Profitable

Posted on: June 28th, 2012 by credit

As the economy grew more unstable, not only to consumers and buyers but to businesses and companies too, car dealerships also started losing opportunities as the demand for cars sharply declined due to various factors such as high gas prices and costs of car maintenance. Financial glitches in individuals have a parallel effect in the car dealership market and this is the reason why dealers started to look at the concept of subprime auto leads in a different light. What used to be a risky investment now turns out to be a profitable solution.

In a perfect world, car dealers will not be in favor of subprime auto leads because offering car loans to people with bad credit is a gamble. However, this thinking has been gradually losing its hold due to the rising number of individuals who are in a financially compromising status. This situation left car dealers thinking of another way to gain profit and found the answer by focusing on a new target market—people with bad credit. More often than not, these poor credit holders are ignored by financial institutions and car dealers because of their bad credit history. However, they are still capable of making payments and were once good credit holders. These leads are not as advantageous as normal leads but in a time where normal leads are difficult to come by, you need to be practical and convert subprime leads into sales. In addition, generating subprime auto leads are easier to manage now because of innovations in technology. You can effortlessly keep track and record all of your borrowers as well.

According to statistics, there are more people hitting a financial hiccup than people who are financially stable. This means that you have the power to tap into a greater target market by focusing your energy and services to the larger half of the fraction. By doing this, you will have more sales coming in through subprime auto leads than from normal leads which usually come from people with good credit records.

As a dealer, you have to consistently find ways and opportunities to gain profit even amid financial problems that may arise, be it an economic crisis or an increasing number of credit-challenged people. Think out of the box and come up with ideas that will turn what used to be uncertain investments into profitable alternatives such as generating special finance leads. Remember that a sale is always possible as long as you do not stop pursuing it. Moreover, big dealerships are still alive today despite the crisis mainly because of special finance leads.

Seeing Subprime Auto Leads in a New Light

Posted on: June 11th, 2012 by credit

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 sales—have the right inventory, the right sales personnel, and the right system of managing and converting them.

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