Car sales are in a decline across the nation after a near decade of record breaking sales, and that can make generating new auto loan leads a little difficult for many dealerships. However, there are still some strategies and markets that can be tapped for profits and sales.
Some buyers that you can turn to are those that require subprime loans, or individuals that have a credit score between 500 and 600. The most common individual in this category would be the Millennial.
Millenials have record amounts of debt, and so they might not be the ideal customer, but they still need cars. And they’re going to be looking at ways to get auto financing. This makes them a great source of subprime auto loan leads and other forms of auto financing leads.
But how do you tap into this market and get those subprime auto leads to come to you?
What They’re Buying
First, you have to know what they’re interested in. Millennials are expected to account for 40% of all car purchases by 2020, and with them being better savers than the previous generations, they’re looking to be conservative. The cars they look at will be less expensive.
That means they’re going to look at credit and loan terms. They’re going to want the best deals possible, even if that means having a longer termed loan. This means cheaper used cars and generous loan terms.
How Do You Sell To Them?
Regardless of what kind of car you’re selling to them, you should keep the following things in mind when trying to get subprime leads from this generation.
First, they’re usually coming to the dealership with an idea of what they want before they even step on the lot. They are one of the more tech-savvy generations and have most likely spent some time researching the different options before ever reaching the lot. They might know exactly what kind of auto financing options they want.
Secondly, and most importantly, they likely have a lot of debt. As mentioned above, this can mean they’re open to loans and financing options. You might not even have to sell them on being one of your subprime auto leads since they already have an interest.
So if you want to generate subprime auto leads out of the millennial generation, just take into account their situation. You might find them more open to the idea of the loan at the start.
