Selling used cars and trucks is difficult business, even if plenty of rewards await those who prevail over the competition. Many small, independent dealers today are struggling, particularly when larger dealerships with more resources take aim at the same potential customers.
Small automotive dealers need to use every means at their disposal to compete and stand out above others in their market. Forming a partnership with a lender like Consumer Portfolio Services can turn out to be one of the best ways to ensure the success of a small dealership.
A Partner Invested in Each Dealer’s Success
Specialty indirect lenders now enable a significant portion of the financing that borrowers use to purchase used cars and trucks. In most cases, such lenders reach agreements with individual dealers whereby qualifying loans get purchased soon after each transaction is finalized.
Lenders that focus on this style of financing tend to be less demanding than traditional banks and the like. This means that dealers who work with them will often be able to conclude transactions that would not be feasible if other types of financing had to be used.
That alone can allow a small dealer to start selling more vehicles to a wider variety of customers. Since indirect lenders fare best when their partners are succeeding, though, they tend to offer even more support. Some of the types of services and extras that a lender might provide to a dealer include:
- Lead lists. Some of the most successful indirect lenders put a lot of effort into developing carefully curated lists of consumers who are ready to buy cars or trucks. Offering these to their partners, they make it possible to carry out targeted marketing with high, rewarding success rates.
- Direct mail marketing. Many small dealers feel that their lack of scale puts them at a disadvantage vis-à-vis the competition when it comes to marketing. A lender with a nationwide presence will be able to even out the odds when it comes to tactics like direct mail.
Helping a Small Dealership Grow
Choosing to become one of an indirect lender’s partners can provide benefits like these and others to a small car dealer. In many cases, that will make more of a difference than just about any other decision possibly could.