Although the used car industry is a successful business as whole, it can also be a very competitive one. Even if you have a full inventory of the best used vehicles for sale, you still need customers to purchase those vehicles. Many used car dealerships struggle to stay profitable because of a flooded market. There are used car lots on every corner in some neighborhoods. How can you stay competitive and continue to bring in interested and strong used vehicle leads in today?s market?
Internet marketing
The internet has taken over almost every industry of business. With the internet being so important, you really cannot be competitive if you do not have an internet presence. Even as a used car dealership, you have to find ways to connect with your current and potential customers via the internet. Social media can be effective in advertising new used vehicles on the lot. Email marketing is a great way to communicate deals and discounts to previous customers. Internet marketing is one of the best ways to reach current buying consumers and to generate additional used car leads.
Convenience is also extremely important and is closely related to internet marketing. Many users turn to the internet for convenience when dealing with local businesses. If you can combine convenience with your internet presence, you will have a strong advantage over other used vehicle dealerships. Enable convenience to your consumers by accepting auto dealer leads over the internet, allowing users to schedule appointments online, and even providing credit decisions all on the internet.
Offer bad credit auto loans
Although a lot of used vehicle dealerships have become aware to the huge market of auto buyers with less than perfect credit, many do not do it effectively. Simply offering auto financing to every person, regardless of their credit situation, is not the best business decision. Bad credit auto leads should be handled carefully. Consider income and length of poor credit when deciding on financing. Do not simply offer credit to anyone and everyone, as it can be a recipe for financial disaster. Know the difference between minimal risk and major risk. Buyers with credit scores of 500 to 600 are considered subprime and those with scores ranging from 300 to 500 are considered deep subprime. Offer bad credit auto lead generations, without also harming your business.
Reduce interest rates
Consumers are more aware than ever of interest rates. Many shoppers will actually shop around for even a point of difference in interest rates. Reducing your interest rates can significantly increase your auto lead generations. The average auto loan interest rate is currently 4.16%. Lowering that amount even a small amount can produce an increase in auto customers. Additionally, you can attract even more new leads for car loans with tax incentives and discounted dealer pricing. Consumers want to feel like they are getting the best deal. When they are satisfied with their purchase, they will recommend you to others.
Increase length of loans
Auto loans used to only be offered for three or four year periods. The average duration of a new car loan rose to a record 66 months and a record 62 months for used cars, as lenders wrote more five year, six year, and seven year loans so that buyers could afford the monthly payments on vehicles that have grown more costly. Increasing the financing terms can actually encourage buyers to purchase vehicles at a higher price, offering you more auto lead generations. Auto finance leads are an important success factor in any used vehicle business.
Used vehicle dealerships are a billion dollar industry in the United States. However, as with any business, the opportunity for profits has saturated the business market. With so many used vehicle dealerships in existence, dealerships need to find new ways to be competitive. You can increase your auto lead generation numbers by creating an internet presence, offering convenience, reducing interest rates, offering buying incentive programs, and extending loan lengths for more expensive of vehicles. Always keep the consumer in mind and find ways to make the used car buying experience easier for them.
