Do you want to offer in-house dealer financing to improve customer satisfaction?
Are you looking to speed up the buying process for your customers?
Dealer financing is a great way to speed up the buying process for your customers, and having control over the sales process should improve customer satisfaction.
Offering dealer financing is a useful tool for your sales team. It’s popular with car buyers because of the ease of the transaction – just shop for a car and get financing right there.
Dealer Financing for Car Buyers
Dealer financing is simply financing offered by a car dealership. Sometimes the car dealership underwrites the loan, other times the loans are packaged and sold to a financial institution. Your dealership makes money on whatever markup you apply to the rates, and your customers get the benefit of not having to shop around.
Dealer financing is a time-saving solution for your dealership and your customers.
Your customers value their time. You should value their time, too. Offering dealer financing is a way to give them their time back – they can get approved for financing while they’re test driving a new car.
Dealer Financing Facts and Statistics
Dealer financing is a common type of financing offered to car buyers. Auto financing, in general, is popular, and one of the most common types of debt in the United States. In 2018, auto loan debt increased by $9 billion, and total auto loan volume and originations are the highest they’ve ever been.
Here’s what you need to know about auto and dealer financing:
- Average Price of New Car: There has been a 22% hike in the average amount borrowed for new and used cars over the last 10 years, with new cars costing around $30,500 and used cars costing around $18,400.
- Growth in Dealership Financing: Just in the last quarter of 2018, dealership financing comprised 54.7% of all new auto loans. That’s a 2.3% increase over the same quarter in 2017.
- Increase in Applications: From the period of September 2009 through June 2018, there was a 159% increase in auto financing applications.
An increase in applications over the last decade is a significant boost to the auto industry, and that is only magnified by the average amount financed for a new vehicle. Combine that with growth in-dealership financing, and your dealership can see the benefits of offering dealership financing.
Dealership financing is the perfect way to increase your profits and increase customer satisfaction. It speeds up the buying process and gives your customers confidence in their purchasing decision.
Looking for a way to offer dealership financing to your customers? Contact The ACE Group today and we can help you figure out the best solution for your customers.