How to Secure Financing Options for Your Car Dealership
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 dealership, it’s important to choose a finance company that not only knows your industry and market but aligns with your dealership’s values and goals.
If you’re an independent car dealer, you’re most likely looking for an auto lender or finance company that offers competitive rates and flexible terms and is also intentional about learning and offering viable solutions for your business needs.
If you’re a buy here pay here (BHPH) car dealer, you probably already offer in-house financing, but may want help managing the collections side of your business.
If you’re a franchise car dealer, perhaps you offer traditional financing options that only customers with prime and super prime credit scores qualify for.
Here are a few steps your car dealership can take to secure the right financing options for your customers:
- Determine your dealership’s eligibility.
Because some auto lenders and finance companies don’t work with independent car dealerships, it’s important to do your research to confirm your eligibility before applying if you’re an independent dealer. Credit Acceptance works with independent, BHPH and franchise dealers to help them approve credit-challenged customers for car financing. Learn more about our auto finance programs. - Seek out lenders and finance companies that align with your needs.
When determining your finance and insurance (F&I) options, it’s important to consider the goals of your dealership and what’s most important to you and your customers. Every dealership enrolled with Credit Acceptance has a dedicated Market Area Manager assigned as a long-term business consultant to help your dealership reach its goals. Learn more. - Contact the lender or finance company and apply.
Once you’ve narrowed down your options, reach out to the lender or finance company to ask questions about their programs and discuss next steps. Once you fill out the form on our website, your assigned Market Area Manager will reach out to schedule an initial meeting and go through all the details of our auto finance programs.
For the last 50 years, Credit Acceptance has been committed to helping independent, BHPH, and franchise car dealers sell more cars and make more money. Our Portfolio Program gives enrolled dealers the opportunity to receive up to 80% of future collections. Last year, we paid enrolled dealers nearly $4 billion in total funding and more than $185 million in Portfolio Profit.
If your car dealership is ready to approve more customers, sell more cars and make more money, simply fill out the form on our website to learn the benefits of becoming an enrolled dealer!
