One of the hardest parts about getting used car leads is that many individuals don’t have the credit to acquire traditional auto loans. These bad credit auto leads then become subprime leads, which means an individual that has a credit score of 500 to 600, or lower in some cases.
Subprime loans generate new leads for car loans, giving those that traditionally don’t have access to the ability to purchase a vehicle the opportunity to own a new car. However, they might not have been able to get the car that they wanted until just recently.
That’s because just recently it was announced that somewhere around 3.5 million cars will come off lease, and thus drive the prices of cars down tremendously.
But what does that mean, exactly, for these bad credit auto leads?
Well, according to the article by the Los Angeles Times, many individuals are reaping the benefits of these low-cost cars, with some saving thousands of dollars.
One such individual, Jake Winfield, a math teacher in Phoenix, Arizona, managed to purchase a 2015 Accord with less than 15,000 miles that had been a lease. The man reports that he had paid just under $20,000 for the car, and the original price had been somewhere around $25,000.
“I was able to get a higher-end car by buying used than by buying new, with my budget,” Winfield said.
Several car companies are predicted to take a major depreciation hit because of the lease ending, like Infiniti with their three-year-old Q50s coming back as “used” this year. The car, listed on Autotrader.com last month, had 36,000 miles, all-wheel-drive, and was originally priced at $40,000.
It was listed for less than $24,000.
This is big news because the average borrower for an auto loan is $17,966 in debt, which is not too far from the price of some of these new cars. And with over 3.5 million coming back to the dealerships this year? That means that some of them might have a price much lower than expected.
Perfect for candidates of a subprime loan, and for dealerships to generate leads for.
There are predictions used-car prices as a percentage of original sticker price will fall for at least the next three years. This trend will continue to at least 2020, when Automotive Lease Guide expects more than 4.1 million lease cars to be returned.
Making it a perfect time for bad credit auto leads and dealers to take advantage of lower prices.
