Car dealers nationwide have to fight to stand out from the competition. Almost every local automotive market is host to a number of dealers who each have something to offer. As a result, only those dealerships that are able to distinguish themselves and find their own niche can hope to achieve the growth-related goals that are often so important.
Becoming a partner of a company like Consumer Portfolio Services can easily turn out to be a significant competitive advantage for dealerships with the right strengths and resources of their own. Entering into an agreement with a lender like this can open up a number of important new options for a car dealership.
More Dealers Find That Lenders End Up Being Their Most Important Partners
Outside of older, inexpensive cars that are sold for cash, typically by private parties, most automotive purchases in the United States are financed to some extent or another. Many would-be car buyers, however, do not qualify for loans from the traditional sources, whether that means a local credit union, a national bank, or a specialized automotive financing company like GM Financial.
There is now another option, however, that can end up being available even to those with especially imperfect credit records. Lenders that specialize in buying loans issued to sub-prime borrowers by dealers now frequently fill in what used to be significant gaps. Working with such a lender can benefit a car dealership in ways including:
- Marketing support. Lenders who focus on this type of business perform better when the dealerships they partner with sell more cars. As a result, some of these companies offer leads and other useful resources directly to dealers. Especially for dealerships that might not have strong marketing of their own, that can make a real difference.
- More qualified buyers. It can be painful for sales staff to spend time working with car shoppers who end up not being able to secure the financing they need. With looser standards allowing more loans to be extended, dealers who partner with the right lenders can minimize the impact of this common problem.
An Appealing Option for Many Dealers Today
With such lenders also supporting the dealers they work with in other ways, this is a possibility more would do well to explore. Signing on with such a lender can easily make a given dealer considerably more competitive.