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The Changing Economy and its Effect on Automobile Dealerships

The Changing Economy and its Effect on Automobile Dealerships

Impact on Special Finance Auto Loans

The World suffered an unexpected turn of events. The Covid-19 Pandemic upended global and United States economies resulting in a shutdown of major economic sectors, job loss, reduced wages, and massive unemployment. Bill Fay, of Debt.org, said that “The unemployment rate went from 3.5% pre-COVID to a peak of 14.8% in April 2020—the highest level since 1948.”

Just as we were trying to bounce back from this “new normal”, the war in Ukraine and resulting geopolitical stress have further complicated the macroeconomic landscape. With this drastic change in the economy, what does this mean for car dealers themselves and how will Subprime Auto lending help you reach your auto sales goal?

More Debt in the changing Economy

Since the pandemic came as a bombshell, to survive, many people collapsed into debt. According to Experian, the total U.S. consumer debt balance grew by $800 billion. That was an increase of 6% over 2019, the highest annual growth jump in over a decade. Consequently, many people who had good credit scores before the pandemic, are now struggling with debt and recovering from poverty. We have seen a significant Surge in Subprime Auto loans.  With the decreasing number of people with standard credit scores, the number of people with limited credit history and even bad credit scores increases. This means that Dealerships that do not offer Special Financing, will feel a slight downturn in generating quality leads.
On the other hand, if your Dealership offers Subprime Financing or Subprime Auto loans, more leads are potentially available offering a huge advantage on the sales floor. Furthermore, Consumers can’t improve their credit score without having lines of credit, and they can’t get loans or credit cards because people don’t want to lend to them. However, if you can offer them multiple ways to purchase the “car of their dreams”, they will surely spread the word about your dealership offering a fantastic referral pipeline, and you’ll be able to help them increase their credit score.

Special Finance Car loan’s contribution to Economic growth

Although some Economists worry that Subprime Auto Finance may cause another market crash, others, including banks, see Subprime lending as an important factor in economic growth. With annual revenue of $10 billion, Dealerships can help improve the economy significantly. Without Subprime Car loans, many customers, (especially in our current situation) wouldn’t be able to lease or buy an automobile. Indeed, Global events have seriously affected our economy, but it doesn’t mean prospective buyers have decreased. It is absolutely possible generate quality auto leads. If your dealership offers subprime lending options to consumers, you are on the right track! Partnering with a company like AppleConnect, which has the same vision for Subprime consumers, can help to increase sales.

AppleConnect is one of the most innovative lead generation providers and Marketing Agencies across several verticals. We are among the most reliable and flexible lead providers in the Automotive, Insurance and Credit Repair Industries. We use a strong network of search-engine-optimized domains that are highly trafficked to provide valuable subprime leads nationwide. We have multiple lead generating websites across the United States, and as an added benefit, AppleConnect works with you throughout the entire process! This includes calling any leads with whom you have not connected and verifying that prospects are actually in the market for a new or used car. In addition, we guarantee that every lead is a prospect looking for a vehicle or leads are replace with new ones.

If your dealership markets to subprime customers, call AppleConnect for the most credible leads at (888) 64-APPLE or visit the website at GoAppleConnect.com