By John Flynn, Open Lending President & CEO
Offering loans through auto dealerships has been a long-proven way of financing automobile purchases for the American public. It makes the transaction easier on them, and frankly, easier on the lenders. But to continue to win in this market, and to strengthen your relationship with your dealership partners, what does it take in today’s market?
Customers are going to dealerships to purchase a car. They don’t want a loan. They need a loan to buy that car that’s more reliable or larger for their growing family. The dealership works with the consumer, helps them select their vehicle, builds the deal, and then sends it out for quotes to multiple sources. We want to win these deals!
The dealership frontline personnel serve as an extension of your frontline, sitting with the buyer in front of them. They have a relatively captive audience. And it’s likely the buyer has been there for quite some time. They’ve input their information and are wondering who’s going to make the buyer an affordable loan. The dealer wants the same thing from its lenders to help them close the deal. Here’s the winning combination:
Give Speedy Responses
The faster an offer for the loan goes back to the dealership, the better. Remember, they’re selling your product, so ensure you can service the loan and send them a response quickly. Open Lending can help you make that deal in a few seconds! Contact us to learn more.
Offer Product Support
If a loan offer needs to be discussed, make sure the dealership can quickly contact a live person. The person they reach should be able to access necessary information and empowered to make decisions. The more effort and time to navigate the system, the longer their customer waits – he or she isn’t your borrower yet – and it costs everyone more.
Educate the Dealership
Remember, the buyer will link the loan to the dealership. Like any business, the dealer is looking for return business, either for service or future purchases. They need to understand your processes on loans, delinquencies, etc., so they can inform the customer. Providing this information upfront can remove hurdles down the road.
Provide Solutions for Most
Dealerships don’t know the credit score when they start an application and the buyer is in front of them. They want lenders that can provide solutions to a wide range of purchaser credit histories. They understand you’re a business too, but they do want your support in selling your wares. Offering loans in lower credit tiers will earn your credit union or bank more A paper, too. Check out Leaders Credit Union’s results leveraging the Open Lending – Allegro Lending Suites partnership!
Be a Closer
Once the paperwork is done, they want the deal completed and money changing hands. This final step must be completed to get the vehicle off their books and continue doing business. Efficient funding is critical.
Ultimately, dealerships want more than just products. They want a partner they can trust who will engender a fair and efficient experience for them. To be that partner, you will need to set them up for success. In addition to funding their customers, invest the time and resources into maintaining these relationships and providing information and support for their sales teams.