“Subprime” has a negative connotation, especially after the housing market crash of 2008. Many auto dealerships are hesitant to pursue subprime car loan leads. However, subprime leads can be one of the most profitable lines of business. So, if you’re looking for how to improve vehicle sales, look no further than subprime car loan leads.
What Are Subprime Car Loan Leads?
Subprime lending extends necessary cash to consumers who are ineligible for typical loans. This may be because their credit scores are suboptimal (generally below 620). Folks with scores of 300 or less can obtain “deep subprime loans.” These options also are beneficial for those with a limited credit history.
A bad credit score or a short credit history does not negate the need for a reliable vehicle. These consumers still need transportation, and purchasing a car can help them start to rebuild their financial foundation. The trade-off is that they pay higher interest rates, which is a plus for your dealership’s finance function. Now, the question is: how to improve vehicle sales with these leads?
- Target the right audience. When it comes to your marketing efforts, find the “sweet spot” between credit scores that are too high and too low to optimize conversions and profits while mitigating risk. An auto lead generation company can point you in the right direction.
- Know subprime. Training your entire staff, from marketing teams to salespeople, will ensure they take the right approach to reaching these consumers. Take advantage of regional training opportunities to develop these skills.
- Stock the right inventory. How many sales have you lost because you didn’t have the right vehicle available? Keep track; analyze subprime consumer needs, and deliver the cars they need.
- Prioritize appointment setting. This can be a big weakness for dealerships, especially in terms of subprime leads. Setting appointments conveys professionalism, and your staff needs to be well-versed in communicating with consumers regardless of credit score.
- Analyze needs. When a subprime lead visits, take the time to assess his/her needs. You’ll stand out as an authority in this space, and you’ll be able to steer consumers toward financing options. Emphasize the goal of helping to rebuild credit.
Generating subprime car loan leads is an effective way to increase sales and build your business. These tips will get you started. CarFi Direct can help you cross the finish line more quickly and easily by sending customers who’ve secured a loan, and are motivated to buy, directly to your showroom. Contact us to learn more about how to improve vehicle sales with subprime leads!