Subprime customers are slowly starting to take over the automotive market due to debt-to-income ratio and from new reports which state slower economic growth and rising prices for new vehicles. If Canadian car dealerships can cater to the needs of subprime customers, they can boost sales for their business.
According to Statistics Canada, the average Canadian household spends an average of $10,000 annually on private transportation. Vehicles are typically the second most expensive asset owned after a home, and buying a vehicle is a significant event in a person’s life. Through the car buying process, Canadians want trust, reliability and an agreement that they’re comfortable with.
When a consumer walks into a dealership, the first person they talk to about their financial situation is a member of your team. But, if the customer falls under subprime and your staff isn’t trained to help someone with less than perfect credit, it could be a lost lead. According to Scotiabank’s February Global Report , more Canadians are interested in buying used cars as opposed to new cars. For dealerships in Canada, this stat is important when mapping out how your business should operate.
Is your car dealership prepared for Canada’s changing economy?
Subprime consumers are starting to take up a large percentage of the automotive market, and auto loan lenders can help consumers with less than perfect credit apply for financing within a subprime budget. Credit-challenged customers in Canada impact car dealership buying trends, so it’s best to be ready for these leads when they walk through your dealership’s doors.
It’s important for car dealerships across the country to ensure that Canadians facing all types of credit situations have access to a fair auto finance market – one that helps both subprime and prime customers. Building a subprime infrastructure, developing strong relations with subprime lenders and training your sales team for subprime customers will open doors to a massive market.
Starting a subprime department is easy if you have the critical elements in place – including the customers. Thankfully, Canada Drives can help. We’re an auto finance company that is partnered with hundreds of car dealerships all across Canada, and we specialize in helping dealerships thrive in subprime. Canada Drives is the number one subprime provider in Canada – we own 90 per cent of the subprime market. We’re a trusted brand name that can guarantee consistent lead flow. Plus, our advertising partners include Facebook, Autotrader, Kijiji and TSN.
If you want your numbers to soar and dealership to dominate, give Canada Drives a call today to see how we can help you start setting up the best subprime department for success.