Growing Your Business with Subprime Auto Leads

Written by Car Talk. Posted in Car finance leads, Subprime auto finance leads, Used car leads

Auto loan leads
What are subprime auto leads? When an individual has a credit score between 500 and 600, they are considered subprime. When an individual has a credit score between 300 and 500, that individual is considered deep subprime. So when an individual with a credit score below 600 needs to buy a vehicle, they are considered subprime auto leads.
With the economic crash in 2008 and many people losing their jobs and homes, the number of subprime leads jumped dramatically. Traditional banks see these people as a high risk and are not likely to lend them the money they need, or the strings attached to the loan such as interest, lifetime, and down payment are too much for the individual.
The duration of car loans have grown dramatically in recent years. Where an average car loan used to be three years, it is now five to seven years. This has grown in an effort to lower monthly payments and make the car loan more affordable to those with lower incomes and increased debt.
Auto financing interest generates roughly $98 billion in revenue each year. Subprime financing interest generates roughly $10 billion in annual revenue, so while it isn?t nearly as much as regular car loans, it is still an enormous business with every growing potential.
Auto finance lead generation provides individuals and dealers with leads to loan options for those with bad credit. Finding the car finance leads that will get the deal closed. For many, looking to buy a vehicle with bad credit is hard, but there are options. Subprime auto finance leads serve a specific and growing need that cannot simply be ignored.
There are a growing number of used car dealers that are simply financing their own deals. This cuts out the middle man. Although they also take on the risk, the potential for increased profit is greater than the risk. There are also a growing number of individuals self-financing their used car purchase. However, this is not possible for everyone. On study suggested almost 40% of used car buyers are buying the vehicle outright and avoiding the loan altogether.

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