Regardless of how effective a car dealership’s marketing strategy may be, one of the most significant barriers to closing a deal is securing financing for the purchase of a new or used vehicle. Customers with subprime credit are the trickiest to approve, as they usually have a history of financial delinquencies and are short on cash which makes securing a downpayment impossible. A subprime lender understands the challenge these customers pose and offer a variety of lending options which will allow a dealership to approve more shoppers and increase their conversion rate.
Targeted Marketing Strategies
Individuals with bad credit are often cautious of visiting a dealership, as they fear that their past financial decisions will prevent them from being approved for a loan. A subprime lender will utilize targeted marketing to pique the interest of those with less than perfect credit, and allow them to shop for a car with confidence. Most use online marketing and direct mail campaigns to help reach customers who otherwise may never set foot on a new or used car lot.
Online Dealer Portal
The internet has changed the way people obtain a loan, as nearly every aspect of the application and underwriting process are now completed online. Subprime lenders provide dealers with a variety of online tools, which allows them to process more deals in a shorter amount of time. The portal also makes it easy to identify where a loan is in the underwriting process and allows for quick loan funding.
Enhanced Customer Convenience
Some consumers are uncomfortable using a bank that they have never heard of, and in rare cases, it may cause them to abandon a transaction. Most lending companies have a robust online portal that allows a consumer to complete a variety of tasks, which helps build consumer confidence from the very start. Streamlining the payment process and making loan information available online will result in greater convenience for a consumer and a higher conversion rate.
If a dealership is struggling to close deals and finds that customers with bad credit are often left in the lurch, it may be time to partner with a subprime lender. Consumer Portfolio Services is a publicly traded financial organization that is dedicated to easing the burden of the car buying process for dealers and borrowers alike. Check out their website to learn more and discover how they have helped hundreds of dealership increase their revenue.