CAPITALIZING ON THE SUB PRIME MARKET

For The Vast Majority Of Americans, Life Without A Car Is Unthinkable.

Roughly nine out of ten American households own at least one car and more than a third have two or more. The number of cars on the road today far exceeds both the number of licensed drivers and the driving age population. Nearly nine out of ten American workers also rely on their cars to get them to work compared to only five percent (5%) of workers who rely on public transportation. Studies show a strong correlation between car ownership and higher employment rates.

While the auto industry has a generous attitude toward the financing of cars, this attitude does not always extend to lower-income buyers, those without established credit or those who have previous credit problems.

This Is Why The "Sub-Prime" Market Is Worth An Estimated $60 Billon And Is Growing Approximately 15% A Year

For the past several years, there has been an increasing use of the Internet for price comparisons and web processing, while use for all other categories has decreased¹.

More And More Dealerships Are Looking To The Sub-Prime Market As A Viable Source Of Revenue And Sales

The key to success in this area focuses upon the dealer’s commitment. Unlike other realms of consumer transactions, auto sales and lending is still a highly personalized industry that is based on direct face to face negotiation between dealer and customer. A dealer needs to set up a dedicated sub-prime program with personnel who understand their customer, the applicable laws, and the challenges faced in closing the deal. Most important are the referrals created through this process.

¹ National Automotive Finance Association