Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Amy Taggart

Amy Taggart Marketing Manager

Exclusive Blog Posts

2017 Presidents Club Insights - Patrick McMullen

2017 Presidents Club Insights - Patrick McMullen

Listen to what Patrick McMullen from MAXDigital has to say about the future of automotive, what dealers can do today to prepare, and how DrivingSales Presi…

Five Tips for Selling Used or Certified Pre-Owned Vehicles

Five Tips for Selling Used or Certified Pre-Owned Vehicles

Selling used or certified pre-owned vehicles can be daunting task. With prices, laws, and competition varying across the country selling a pre-owned car fo…

What Motivates Your Employees to Perform?

What Motivates Your Employees to Perform?

Sorting through resumes, you find applicants who show potential. There are some with experience to walk on the job and set your service department abla…

How to Recruit the Best Talent for Your Dealership

How to Recruit the Best Talent for Your Dealership

Employee turnover can cost a dealership approximately $400,000 per year through lost sales, service offerings, new hire search, and training expenses even …

2017 Presidents Club Insights - Mark Brown

2017 Presidents Club Insights - Mark Brown

Hear from Mark Brown, sales director at Grappone Auto, about what he thinks is coming for the auto industry, how dealers can prepare, and how the DrivingSa…

Dealers, are you prepared for a looser lending environment?

 

The good news for car buyers and car dealers is that lenders are finally beginning to loosen up when it comes to lending to buyers with less than perfect credit.  The average credit score for auto loans fell to 766 in the first quarter of 2011 which is the lowest since the last quarter of 2008, according to figures that Experian released last week.

Most Americans have hunkered down and made do with what they have over the past few years.  Consumers have repaired old cars and made do with their family truckster while finances were tight.

Others have wanted to buy but have been unable to do so because cautious finance companies have been unwilling to lend to buyers with credit problems.  The pent-up demand from consumers along with lenders loosening their purse strings should result in a spike in sales for dealers who are prepared.

Secondary departments have to begin getting the inventory in place to work with secondary customers and reaching back out to the lenders that have taken a hiatus from dipping into the secondary market.

The next step is to get the word out to consumers that the banks are lending now.  Dealers should go back through old leads and customers who they couldn’t get done over the past few years.

If a dealer doesn’t see secondary traffic or have a means by which to drive that traffic to the store, now is the time to start exploring those options.  Up to a third of all Americans have what would be classified as "subprime" credit, which falls into 680 and below.  Any dealer who chooses to ignore that demographic is forfeiting a huge chunk of market share.

To get back into secondary, first you need to get your lenders and inventory in line to cater to the secondary customers. Next reach out to customers who had the desire to buy in the past but lacked the ability.  Contact me to learn more about ways to drive motivated buyers in that 520-650 wheelhouse to your dealership!

Brian Matthews is an account executive for Carloan.com. He has been helping dealers with their sales and marketing processes since 2007. You can reach Brian at 804-521-8569, via email atbmatthewsATcarloan.com and follow Brian on Twitter at @BrianCarloan.

 Unlock all of the community & features  Join Now