THE LOT BLOG

Like first-time car buyers with no credit, getting approved for auto financing can be challenging for consumers with bad credit, which is why offering subprime financing through your car dealership can be beneficial for credit-challenged consumers as well as your business. One of the key factors that will set your car dealership apart from competitors in your market isn’t how many cars you sell, but how many lives you change. When you help someone with bad credit get approved for financing...

Since first-time car buyers with no credit can have a difficult time getting approved for auto financing, offering subprime financing through your car dealership is an effective way to approve consumers with limited credit history. Many consumers with no credit aren’t fully informed on the car buying process or what steps to take to build their credit history, which can help position your car dealership as a valuable resource to educate car buyers on their financial journey. Here are some...

For self-employed car buyers, getting approved for auto financing with traditional auto lenders and finance companies can sometimes be more challenging – especially those with bad credit or no credit history. This presents a unique opportunity for your car dealership to offer auto financing that approves everyone, regardless of their employment status or credit history. If your dealership has turned away potential car buyers due to self-employment and/or their credit history, here’s how...

Building customer retention at your car dealership is an effective way to increase trust, credibility and profitability for your business. To retain customers in your dealership, it’s important to understand consumer behaviors in your market and what appeals to your customers. Dealer software company Modera shared some insightful stats to help car dealerships identify and manage customers more effectively when developing customer retention strategies. Car buyers become more loyal to...

According to a recent Experian study, between 2019 and Q4 2020, auto financing debt reached an all-time high of $1.37 trillion. Despite changes in consumers’ daily travel and commutes, the auto financing market grew at roughly the same rate — six percent — as it had in previous years. “Perhaps one of the most unexpected trends was that delinquencies didn't rise significantly during the pandemic, though we know that a variety of accommodation programs, along with stimulus packages, likely...

With another graduation season in the books and another school year approaching, your car dealership may be seeing an uptick in recent college graduates or current students who are in the market to buy a car. Many of them most likely are first-time car buyers who need help navigating the process, so you will need to know their car shopping behaviors and preferences. College Student Car Buyers Most college car buyers are generally in the 18-23 age range, also known as Generation Z....

With the influx in used car sales over the last year resulting from new vehicle production delays, franchise car dealerships are in a unique position to leverage this new — or shall we say used — car-buying trend.

As lingering effects from the 2020 economic shutdown continue to disrupt the auto industry (i.e. going digital, inventory shortages, etc.), car dealers are finding new ways to adapt and stay on pace with emerging trends. While the consumer behaviors have significantly shifted to the online space, Automotive Mastermind says car buying preferences are also changing as a result of consumer finances, government regulations and shifting product mixes from auto manufacturers. To help car...

As online car shopping continues to increase, consumers are expecting a seamless digital experience from car dealerships. A recent Automotive News study found that 83 percent of car buyers prefer to shop online to save time. To accommodate today’s car buyers, dealerships are adopting new ways to engage with consumers and offer a safe and convenient car shopping experience. Here are three digital car shopping trends that are emerging in car dealerships: Touchless Payments More car...

As the auto industry continues to recover from the effects of the COVID-19 shutdowns in 2020, manufacturers and car dealers are relying more on industry trends and insights to develop their business strategies. Since Generation X and Baby Boomers make up...

A key part of running a successful car dealership is maintaining compliance. The automotive industry has numerous regulations that may seem overwhelming for your dealership to keep up with. However, setting up and maintaining a strong compliance program in your car dealership is necessary to keep it up and running. Here are five ways to maintain compliance in your car dealership: Commit to being compliant. Ignoring compliance won’t make it go away – it’ll only make running your car...

It’s no secret that a lot has changed in the auto industry over the last year, particularly with regard to Millennial and Gen Z car buyers' buying trends. In fact, according to a recent Experian study, Millennials and Gen Z are the only two generational segments of the automotive industry seeing growth. The report found that new vehicle registrations by Gen Z saw growth from 3.0% to 4.2% from Q3 2020 to this year. While Millennial and Gen Z consumers are oftentimes pooled into the same...

While COVID-19 brought about some shifts in car buying trends, automotive brands have managed to adapt by implementing incentive programs, making contactless service available and transitioning the car buying experience from in-person to online. Even though online car shopping has gained popularity due to the pandemic, the appreciation for the in-person car dealership experience remains, particularly amongst millennials, who made up 23 percent of car buyers in 2020, according to Cox...

While the effects of COVID-19 have rippled through multiple sectors of the economy, the number of auto loans in the U.S. hasn’t changed much from pre-COVID days. According to Experian, the average consumer auto-loan debt grew by a mere 2 percent, the same increase as 2019. Additionally, the percentage of consumers’ auto loans that were 30 or more days past due decreased by 22 percent in 2020. Unlike other debt types (i.e. mortgage, student loans), there has been no federal consumer debt...

The demand for used cars has been on the rise as a result of the coronavirus pandemic and its effect on consumers’ growing aversion to public transit and rideshare apps. The delay in new car production resulting from the COVID-19 shutdowns has also contributed to the increase in used car sales. J.D. Power reported that car dealerships sold 2.1 million used cars in May and June of 2020, which is 9 percent more than they did in those same two months of 2019. Knowing this information, how can...

Although COVID-19’s effects have rippled into 2021 for dealerships, experts have said that the outlook for the auto industry looks promising for 2021. University of Michigan economists expect a solid rebound for car sales and production in 2021 and 2022. In a recent article, U.S. forecasting specialist Daniil Manaenkov, predicts new car sales will climb to 16.3 million units in 2021, and 16.7 million units in 2022. However, according to the University of Michigan economists, COVID-19...

COVID-19 has caused a massive shock to the U.S. and global economy, affecting the automotive industry. Initially, supply shortages posed a major threat to the automotive market since overseas factories producing parts and equipment were shutting down. Then when the virus hit the U.S., car dealership activities and consumer demand hit an all-time low. Last April, the automotive industry witnessed new and used car sales go down by 51 and 54 percent respectively. But as the economy gradually...

The unprecedented events that have occurred in the year 2020 – namely the coronavirus pandemic – were a shock to the entire world. Schools and businesses shut down, causing the economy to take a hit. However, this period of uncertainty gave way to a surge in the buying and selling of new and used cars. Used Car Sales in Demand With automotive manufacturers on lockdown in April and May due to shelter-in-place and social distancing orders, the number of new cars hitting dealer lots...

There are many scenarios that may prevent car buyers from getting credit approval from traditional finance companies and auto lenders, two of which include multiple autos on bureau and/or one or more repossessions on the customer’s credit history. With the economy in such an uncertain state, car dealerships may want to add subprime auto financing options to be able to help car buyers with bad credit purchase a car. Here’s how your car dealership can approve car buyers with multiple open...

Behind every successful car dealership is a solid team of individuals working together for the greater good. To build and nurture a quality team, your dealership should foster an environment where your staff feels empowered, valued and safe. If you’re looking for ways to boost the morale of your car dealership staff, here are a few ideas: Help everyone understand their purpose. Reinforcing the purpose of your staff’s individual roles and responsibilities and how they contribute to your...