15 Jan Subprime Borrowers Can Benefit from Preloaded Appearance Bundles, Too
F&I managers always have a unique task ahead of them with subprime borrowers. These buyers are already aware of the obstacles they are likely to face when buying a car. They know they will be looking at a higher interest rate which will make the payment higher and could keep them from getting the car they really want. It’s not a very enjoyable experience for these folks.
Between bad credit, past job loss, or both, subprime borrowers are generally not buying a car unless they absolutely have to. Their last car may have been wrecked or simply doesn’t work anymore. There is always a story behind the decision to come into your dealership and it’s often not a happy one.
This requires an extra level of empathy when working a deal with a subprime or ‘credit challenged’ buyer. One of the simple things your dealership can do is offer some lower margin ancillaries to give them some extra peace of mind when it comes to cosmetic repairs on their car.
This works well to also help make sure that if they bring the car back to trade up when their credit recovers, it’s in good shape and ready to be a front-line used car. This also serves to make the subprime borrower feel like they are being offered the same protections every other buyer gets when purchasing from your store.
Preloaded ancillaries like a full protection package will help them keep the wheels, windshield, paint, fabric, and body in good shape if they have protection that requires no deductible and therefore NO out of pocket expense. As most subprime borrowers have higher LTV to make a deal happen, they may not have much disposable income to help with these repairs. You save them money and that keeps CSI high for buyers that feel the whole world is against them.
Click here to find out more about how your dealership can get set-up with a preloaded ancillary bundle through ExoGloss. Help make sure your subprime buyers get the same ‘red carpet’ protection all buyers get at your store.