There’s a big difference between new and used car shopping. New car buyers are often looking for their dream vehicle. Used car buyers are more likely to be on a budget. But whether a consumer is buying new or used, they will most likely need to finance their vehicles.
Only 36% of buyers purchase their vehicles in full. The rest of them will require help financing their vehicles — which is where you, the dealer, come into play.
Some consumers have even narrower budgets than others, or have very low credit scores. As a dealer, you can use this opportunity to make a difference and be transparent with them about their options. Subprime auto finance loans are often the only option for these consumers, but using the following best practices for used car leads and loans can help your customers, as well as grow your dealership.
Price your vehicles according to the market
Most dealers post the MSRP on new auto listings. Yet most folks know that the majority of buyers don’t pay MSRP. Using market-based pricing will attract more customers and close more deals.
Be transparent about each car’s history
While new car dealers often post factory photos of the cars they sell, a used car dealership cannot get away with that as easily. Post accurate photographs of your vehicles in your listings, and list relevant information that pertains to the cars’ histories. An informed buyer will want to know the following things:
- How many owners has this car had?
- Has it been in any accidents?
- Has it had any recent body work?
- Are there any parts that will need to be replaced soon?
- In your listings, don’t use generic cookie-cutter descriptions. Convey emotional appeal, and be honest about the vehicle’s history. This will make you more trustworthy as a dealer, and allow customers to make informed decisions.
Don’t negotiate sales prices
Negotiable sales prices can be appealing to some buyers, but also tell them that you’re able to go lower. By validating used car prices with the market value, you’ll spend less time negotiating, which your customer will appreciate.
Using these best practices will certainly show that you care about the customers’ finances and build credibility as a used car dealer. To help low-credit customers even more, allow Cyber Lead, Inc. to generate subprime auto finance leads. Like opting for a used car, these subprime loans allow customers to pay what they can, not sacrifice their bank accounts for something they can’t afford.
