When you run a car dealership, offering a range of vehicles to your customers isn’t the only thing you can or should do.
If you want to bring in customers, you need to offer them things that other dealerships might not be providing or that you could do better than your competitors. One of the things you should consider are the financing options that your customers can access from your dealership.
If they’re able to arrange purchase and financing at the same time, it makes it much easier for them to get the vehicle they want and need. Offering subprime auto lenders at your dealership is a great way to expand your finance options. If you decide it’s something you want to do, you need to find the best lenders for your dealership.
What Are Subprime Auto Loans?
Subprime auto loans offer a financing option for people who have substandard credit scores or not much credit history.
A subprime credit score is usually under 620, although there’s no official point at which a score would be called subprime by every lender and credit company. Because subprime auto loans are designed for people who have a checkered financial past or might not have much of a financial record, the interest rates and charges are often higher than with other financing options.
When other options aren’t available to people with subprime credit scores, a subprime auto loan can be the best choice for them.
Why You Should Offer Subprime Loans
Without offering subprime auto lenders to your dealership customers, you could be missing out on a significant customer base. Offering subprime auto loans from your dealership allows you to create more leads, bringing people in by advertising your flexible financing options.
When people are experiencing difficult financial times, they will appreciate those who are prepared to help them out. They’re likely to return to the dealership that was able to offer them the financing that they needed for their vehicle when no one else would offer it to them.
You can benefit from the loyalty that a subprime customer gives you for years to come. You could be filling a gap in your local market, especially if no other dealers are prepared to offer subprime auto loans. And once someone has used your services, they will be more likely to recommend you to friends and family members.
Understanding Subprime Customers
Having an understanding of customers looking for subprime auto loans will help you to realize why you should welcome them and how to find the best lenders for your dealership. Firstly, you should understand that by the time many customers are looking at subprime auto loans, they might already have been rejected by other options.
They could be feeling tired, discouraged and embarrassed. But you can help them through the process of applying for a subprime auto loan and buying the car they need.
It’s important to help them out by making sure they have realistic expectations of the higher interest rates and down payments that a subprime loan usually offers. If you choose the right lenders to work with, you can offer some great deals on products to help make it easier for them.
Look at Lists and Directories
When you’re looking for the best subprime auto lenders for your dealership, it can be useful to look at lists and directories of potential lenders.
This can give you an idea of how much choice is out there and how much work you’re going to need to do to find the best lenders. You could take a look at some of the top lenders or view which lenders are available in your state, which could be more useful.
This is a good starting point if you’re thinking about offering subprime auto loans to your customers.
Find the Best Subprime Auto Lenders for Your Dealership
Professional advice to help you find the best subprime auto lenders is available too. We can help you to find the best subprime auto lenders, and customer leads so that you can benefit from adding another string to your dealership’s bow.
We know all of the top subprime auto lenders and can offer advice on which ones are best for your dealership. We can also provide assistance with increasing your sales through the addition of a subprime auto lender to your products and services.
Get in touch to find out more about how you can find the best subprime auto lenders for your dealership, and how they can be a huge help to your business.