Purchasing a vehicle isn’t always as simple as walking on to a lot, talking to a dealer, and picking out the car or truck most suited to you. For some individuals, their credit history can greatly influence their ability to generate auto sales leads for car dealers. This is due to how their credit score negatively impacts their ability to purchase or get financing for a vehicle.
This is where subprime loans come in to generate subprime auto leads.
Subprime leads make up some 43% of the people who finance their cars. But what are subprime loan leads? They are, in the easiest terms, bad credit auto leads. Loans are given to those with poor credit history, that allow them to otherwise purchase things they could not.
They are generally given to people that have difficulty maintaining a repayment schedule. This is likely due to many things, such as unemployment, divorce, medical emergencies, and much more. Since these loans come at a greater risk to the lender, they generally have a higher interest rate than the average 4.16%.
However, this loan option offers purchasing ability to those that may not qualify elsewhere, and thus opens up a large amount of car loan leads.
How do you know if you’re subprime, however?
There are many different factors that decide if you’re one of these subprime car loan leads. Things like a history of late or outstanding payments on debts, which negatively affect your credit score, are a common cause.
Another common factor is an inconsistent work history. Having difficulty keeping a job can have just as poor an effect on your loan qualifications as a history of late payments or outstanding debt. Lenders like knowing that you have a steady income to ensure that payments are able to be made.
These two things can have an impact if you’re applying for a loan from most lenders, and prevent you from getting the car you need. You might need it to get a job, or to work, and so without it are rendered powerless. That’s where subprime loans come into play, giving you the ability to take a loan when you need it.
No matter your credit score.
If you have any questions about subprime auto loans, reach out to us. We’ll be glad to help.
