Why having a good relationship with finance companies is important for your dealership
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 consumers are looking to secure financing online before visiting the dealership. For this reason, maintaining positive relationships with your dealership’s finance companies is critical to the success of your finance department and dealership.
What car dealerships should look for in auto lenders and other finance companies
J.D. Power’s 2019 U.S. Dealer Financing Satisfaction Study identified two main factors dealerships need to consider when working with their lending partners as well as their credit and car sales personnel, including:
- The ability to answer dealer questions correctly the first time.
- The ability to resolve contracts quickly.
“Dealers are able to put together more attractive, seamless transactions for their customers when they are able to work in lock-step with lenders they trust to deliver fast, accurate, and competitive products,” said Jim Houston, J.D. Power’s senior director of automotive finance intelligence.
How to improve financing opportunities in your car dealership
When thinking about your dealership’s finance department along with the finance companies you currently work with, it’s important to consider whether everyone is delivering in the above core areas.
While most traditional finance companies provide funding for car buyers with prime and super prime credit scores, non-prime and subprime auto finance programs give dealers the opportunity to approve customers with bad credit or no credit.
At Credit Acceptance, we offer non-prime and subprime financing options to more than 12,000 enrolled car dealers across the nation. Dealers enrolled in our program receive competitive advances, same-day funding, and the ability to say ‘YES’ to every customer, regardless of their credit history.
If your car dealership wants to expand your financing options by offering non-prime and subprime car financing for buyers with bad credit or no credit, simply fill out the form on our website to learn the benefits of becoming an enrolled dealer!