Dealer Financing Keeps America Rolling
Are you chomping at the bit to finally break free and take that much-deserved road trip? Join the millions that will be taking to the highways this summer. In a recent survey from Harvest Hosts, 60% of Americans will be traveling more than they did in 2020 and 2019. And many are opting for the comfort and safety of driving vacations more than ever. It’s no wonder dealerships are bustling and enjoying increased sales of both new and used cars.
Cox Automotive reported used car sales were up 69% in April over 2020 and estimated a used car SAAR of 22.4 million in May 2021, up from 21.1 million last May. More vehicle sales mean more auto loans as consumers continue to search for the best deals to suit the budget.
If you’re considering a loan for your next vehicle, you are definitely not alone. According to the National Automobile Dealer’s Association, 85.5% of consumers finance their new vehicle purchase and 55% of used car sales include financing. Of those, 7 out of 10 will receive their loan through the dealership.
There are several reasons the majority of consumers choose to arrange financing through the dealership. The local dealer offers some key advantages to the customer that direct to consumer loans cannot offer. Incentives from the manufacturers on the new models and certified pre-owned are only one of the benefits you receive when you choose a loan or lease offered through the dealership finance office.
Whether the dealer is financing your loan through a captive or a traditional bank, the beauty of securing your loan at the dealer is convenience, flexibility and the capability to approve customers with all levels of credit. Let’s explore the dealer advantages:
Much like a Mortgage Broker, the dealership Finance Managers are generally certified professionals schooled on industry best practices and legal compliance. They are skilled in appropriate deal structure when submitting to multiple lenders to ensure you receive the best deal.
To further advocate for consumers, thousands of dealers have adopted the Fair Credit Compliance Program which was created to ensure consumers still enjoy financing discounts only offered at the dealer while providing those discounts in specific cases like matching a rate at a customer’s credit union in order to win the business, thus supporting fair credit practices.
Because auto loans are a consumer’s second largest purchase after a home, an in-person exchange is still the preferred method of conducting the transaction rather than an impersonal website with a chatbot attempting to answer important questions. Additionally, shopping locally is highly-esteemed by an increasing number of consumers. Wherever you choose, enjoy the open road this summer. Automatic is a leading automotive fintech platform serving independent dealers by providing fast, automated, secure and transparent solutions, enabling your customers to enjoy their vehicle more quickly with a seamless customer journey. Learn more at https://www.automaticusa.com/