Subprime auto leads are potential buyers who have lower credit scores or incomes. They may not qualify for conventional financing, but targeting these leads could prove valuable in many ways.
Statistics show that in recent years, the sales of automobiles are on the decline. If you want your dealership to stay competitive, take note of how targeting these leads can be a benefit to your business.
1. Increase in Sales
Your top priority as a dealership owner is to increase sales. One way to do this is by expanding financing options to subprime customers.
With subprime leads, auto dealerships have access to a steady flow of these potential customers. Most importantly, they’re already actively looking for financing options to purchase a vehicle.
These leads often have a higher conversion rate compared to others since they are highly motivated to purchase a vehicle despite financial challenges.
2. Targeted Marketing
You can also target subprime auto leads to focus marketing efforts better by targeting customers who are more likely to need these financing services.
This is more strategic than wasting resources on a broad audience. Plus, you’ll be increasing your chances of converting these leads into sales.
Subprime auto leads also offer valuable insights into market trends and consumer behaviour which in turn helps dealerships make more informed business decisions.
3. Higher Conversion Rates
These individuals might be motivated to purchase a vehicle, but are struggling with their finances in some way. They may have limited options due to their credit history and find the financing process stressful and uncertain.
That’s why, if targeting these leads, your dealership should specialize in offering options they can afford. In doing so, these customers will be more likely to purchase from you than from your competitors.
Take some time to consider what kinds of financing options you can provide. Doing this will help you cater to the specific needs of these potential customers and increase those conversions.
4. Diversification of Customer Base
Let’s consider customers who may not have considered your dealership before. Subprime leads can help auto dealerships diversify their customer base.
This kind of automotive lead generation can help expand your reach to new audiences. Use this marketing technique to establish new relationships. Then, over time, continue to build loyalty with these customers.
5. Subprime Auto Leads Increase Revenue
You’ll be happy to know that subprime customers can also generate additional revenue. This is accomplished through the sale of vehicles, financing, and extended warranties.
Auto dealerships can also cater extended warranties towards this lead segment. Be willing to get creative when it comes to add-on services that can generate additional revenue.
6. Repeat Business
Customers who successfully purchase a vehicle with the help of the dealership will remain loyal. After all, the dealership helped to build up their credit score.
As a result, they’re more likely to return to that specific dealership in the future. This is the perfect way that your auto dealership can establish long-term relationships with customers.
7. Better Understanding of Market Trends
Within your marketing strategy, be sure to make the most of analytic data. This can be of value when analyzing the success of subprime auto lead generation.
What strategies work to connect these potential buyers to your dealership? What strategies need some improvement?
Considering this data can help you better understand the overall market trends of the auto industry. You might learn that more or fewer people are struggling financially, for instance.
There are many marketing-related insights that come with a successful targeted lead. This route can also help you test brand-new marketing strategies, for one thing. You can then learn valuable information about consumer behaviour and preferences.
As a result, your dealership can make more informed business decisions moving forward. You’ll know how to better handle decisions concerning inventory, marketing, and more.
8. Competitive Edge
Overall, access to subprime auto leads can help auto dealerships differentiate themselves from the competition. That way, they can establish themselves as a go-to destination for individuals with a low credit score.
This can be of value for dealerships in larger cities in Canada that have a lot of competing neighbours. By choosing to focus on a smaller audience like this, you’re building up a niche reputation that will be more memorable in the future.
Opportunity to Help Customers
It’s true that you care about the bottom line of your auto dealership. At the same time, you place a high value on the quality of care that your customers receive. You truly want to help them.
This attitude will stand out to subprime auto leads. You’re proving that you want to help improve their quality of life and regain their independence.
You have the ability to do this by connecting them with the right vehicle. It can provide them with greater mobility and access to job opportunities and other essential services. This is a genuine chance to have an overall positive impact on their lives.
In fact, consider working with your customers on a more relational basis. You can recommend other resources to improve their financial wellness in the long run. This could help establish your dealership as the most credible, reliable one in your area.
Automotive Lead Generation Services
Hopefully, you now better understand the value of subprime auto leads. In order for your dealership to stay competitive in its local market, these strategies are essential.
At Accumulate, we ensure your dealership is connecting with its target audience on all platforms. Get started and book a demo with us today to discuss ways we can pre-qualify prime/sub-prime prospects with financing before they enter your dealership.