The Lot Blog
Most businesses have a goal to grow, and you can’t do that by saying ‘no.’ Your customers come to you looking for a reliable new or used car. Whether it is to get to a job or get kids to school, everyone should have the opportunity to purchase a car. Credit Acceptance gives you the ability to say ‘yes’ to everyone! Customers are more than just a credit score and Credit Acceptance allows you to approve every customer that walks through your door, whether they have subprime to prime credit...
Do you want the ability to approve every car buyer? We can help your car dealership close more deals and get your customers into a new or used car, regardless of credit score!
Subprime financing is defined by the Corporate Finance Institute as financing “offered to individuals at an interest rate above prime, who do not qualify for conventional loans,” most commonly due to no or bad credit history. Subprime auto financing is also a way to help every car buyer purchase a new or used car...
Buying a car can be stressful and is an important decision for your customers. Some car buyers come prepared with a wish-list of items and others know the exact make and model they want to purchase. Regardless of their readiness, most car buyers are looking for a dependable and safe car that falls within their budget.
While offering auto financing through your dealership isn’t required to sell inventory, it gives you the advantage of providing a convenient service to your customers during the car buying process. Many dealerships work with third-party lenders and finance companies to arrange auto financing for customers in needing financing to purchase a vehicle.
You know your car dealership inside out — from your inventory to your sales staff. But how well do you know the people visiting your dealership? Are you asking all the right questions to ensure your customers are buying a car that meets their needs? Are you listening to understand your customers' needs rather than to just sell another car off your lot? If you can’t answer that question with a confident “Yes,” you could be missing out on some selling opportunities.
Here’s a list of...
New car sales continued declining through the first half of 2022 as a result of the microchip shortage, according to a recent Autoweek article. In July, another auto industry news source, Automotive News, predicted new car sales would be down more than 19 percent compared with the first half of 2021. The publication also reported that General Motors took first place in new car sales for Q2.
A July article from TheTruthAboutCars.com reported a year-to-date approximation of 6.57 million new...
With car sales more competitive than ever for both new and used vehicles, as well as car shopping trending toward the online space, keeping your dealership top of mind at every stage of the car buyer journey may seem challenging. Fortunately, the right tools and best practices can help your dealership increase its brand awareness, which is basically how familiar consumers are with your brand. The more familiar consumers are with your brand, the better chances you have of converting them...
While 2020 and 2021 witnessed a sharp decline in car sales resulting from the pandemic, the auto industry appears to be on a steady rise, with new car sales expected to rise to 15.47 million vehicles from an estimated 15.07 million in 2021. According to Kelley Blue Book, trucks and SUVs picked up market shares with a year-over-year increase in average transaction prices at 1.5%, and the top-selling SUVs of 2021 included Toyota RAV4, Honda CR-V, Nissan Rogue, and Toyota Highlander.
Recent auto industry reports show that while used car prices have made steady declines in early 2022, overall prices have remained at an average of $31,450. In a June market analysis from car shopping app CoPilot, it was reported that the decline of used car prices is likely to accelerate in the coming months. According to a recent Cox Automotive report, certified pre-owned car sales were down 22 percent in May compared with a year ago. Despite the recent decline in prices,...
It takes a lot to run a successful dealership — from keeping your website up to date, to managing your inventory, to staying in contact with customers. Trying to do it all can be a handful, which is why having a customer relationship management (CRM) system is crucial for your business. Here are some key benefits of using an automotive CRM in your dealership...
Did you know that men and women have different car shopping habits? While women generally have an idea of what they’re looking for in a new vehicle, the car buying process typically takes longer for women than men, averaging around 75 days, according to a recent study. Additionally, the study found that women tend to be more utility-minded rather than luxury-focused when it comes to selecting a vehicle. In other words, they prefer vehicles known for their durability, reliability, and safety.
As rewarding as owning an independent dealership can be, there are many factors that go into ensuring your car dealership’s success, such as increasing your bottom line, improving customer satisfaction, and staying on par with your competitors.
While offering car financing through your independent dealership is a good way to increase cash flow and profits, working with the right finance company is crucial. Many independent dealers work with finance companies that are more focused on their...
There’s a common misconception amongst franchise dealerships that subprime financing is limited to older, high-mileage vehicles. While most franchise dealers offer traditional car financing with lower interest rates to customers with prime credit scores (660+), offering non-prime and subprime car financing can help your dealership approve more customers, sell more cars, and generate more cash flow and profit for your business.
Through the Credit Acceptance Portfolio Program, your franchise...
Unlike most new and used car dealerships, your buy here pay here (BHPH) dealership has a unique business model centered on providing in-house auto financing to credit-challenged car buyers. The Portfolio Program can help BHPH car dealerships improve cash flow and profitability for their business. We handle the collections so you can focus on what you do best – selling cars. Rather than put up your own capital to finance a customer’s vehicle and manage the collections, your BHPH...
While selling cars is key to running a successful car dealership, having the right financing options in place is equally as important. Most car buyers don’t have cash on hand to purchase a vehicle outright, so offering auto financing through your dealership creates a more seamless car buying experience for customers. The more financing options your car dealership offers, the more selling opportunities you have.
When trying to find the right lender or financing partner for your car...
Since selling cars is the bread and butter of your car dealership, your top priority is closing as many deals as possible. Doing this requires a combination of having the right car sales strategy and working with the right auto lender or finance company that can fund your car deals quickly.
As you’re aware, a big component of closing the deal is how well your sales staff connects with your customers. The car salespeople who are generally most successful are those who are intentional about...
If you’re a dealer that offers auto financing through your car dealership, getting your deals funded quickly is high on your priority list, if not at the top. With most auto lenders and other finance companies, there are various factors that can delay the process of receiving funding in a timely manner. This includes:...
Whether you’re an independent, buy here pay here, or franchise car dealership, it’s important that you have solid relationships with lenders and other finance companies you work with. It’s a given that every potential car buyer who walks into your dealership doesn’t have cash on hand to drop for 100% of the purchase price on a new or used vehicle. Because of this, many customers will rely on your car dealership for auto financing.
In fact, in today’s rapidly progressing digital era, more...
Whether you’re an independent, franchise, or buy here pay here car dealer, there are many prospective car buyers visiting your dealership with intentions of purchasing a reliable vehicle.
Since credit-challenged car buyers are often denied credit approval by traditional finance companies, it’s important that your customers know there is an option to receive subprime auto financing, which is intended to meet the needs of your consumers with bad credit or no credit.
While working with most...
Your primary goal as a car dealer is to sell quality vehicles and generate revenue for your business. However, not offering subprime financing through your car dealership could potentially hinder you from meeting your sales goals.
If you’re an independent car dealer, you may not have all the resources and funding necessary to purchase quality inventory for your dealership. If you’re a buy here pay here car dealer, scrambling to collect monthly car payments from your customers may be...
