There are a multitude of different aspects that go into running a successful dealership as an independent owner. One aspect that has become increasingly important to owning a car dealership is the financing services that you offer to your customers. Currently, the majority of vehicles that are being purchased across the United States are bought with some form of auto loan.
The financing services you choose for your dealership play a crucial role in your business, as these services are what enable your customers to purchase your vehicles. In fact, car shoppers are becoming much more savvy about financing options. Because of this, you want to make sure what you offer is optimal for the majority of your buyers. Finding a company that offers affordable solutions to your customers will make your business a top choice for anyone looking for a new vehicle in your area.
Here at Red Mountain Funding, we offer friendly, affordable financing services in the Arizona area for independent dealers, so their businesses can thrive. As a family-owned company, we understand that car buyer options should be affordable. Extending affordable financing choices to your customers is one way to show you care – and that’s one element of creating repeat buyers.
Here’s some basic information about our different financing services.
What Are Dealer Financing Programs?
Dealer financing programs are the services that dealerships use in order to help their customers purchase cars through the business instead of their own bank or credit union. Auto financing, in basic terms, is when a lender approves to finance your customer’s purchase, in agreement that the customer will pay the lender back.
Auto financing makes up a good portion of all of the different kinds of loans that are administered today. Auto loans also make up a large portion of how most vehicles are purchased today. Because of this, it’s crucial that as an independent dealership, you offer financing services that allow customers to be able to purchase your vehicles. If you don’t offer financing services, or work with a company that doesn’t approve many buyers or has high interest rates, your potential buyers might turn somewhere else.
Dealer Financing Programs
We provide a variety of different financing solutions for independent dealers to be able to reach more customers and sell more vehicles. Here are some of our options:
1. Subprime Auto Lenders for Dealers
Subprime auto lenders for independent dealers help their businesses immensely. At Red Mountain Funding, these are some of the most popular financing programs for dealers across the board. A subprime loan is a loan that is administered to someone that has a credit score below a certain range. Because bad credit is often one of the largest obstacles in a customer’s way when looking to take out a loan for a new vehicle, having the choice of subprime auto loans allows more customers to purchase from your business. Subprime loans are a very popular option for many customers that are browsing for new vehicles because they know that they have a better opportunity of being approved.
2. Indirect Auto Financing for Dealers
Dealer auto financing is another financing solution we offer here at Red Mountain Funding. Many dealerships choose auto financing as one of their services for customers because it also can reach a wide range of people with varying credit scores.
Indirect finance loans are a great choice for dealers because they are applied for by customers through the dealer or the dealer’s lenders, instead of the customer’s credit union or bank. Indirect financing is most often done once a customer has already found a vehicle they are interested in. From there, the dealer can run their customer’s credit through multiple different systems to try and gauge the best price on a loan for them. Indirect financing options give the dealer and the customer, control over their loans, unlike some other financing solutions that often give power to just one party or the other.
Benefits of Choosing Financing Services for Your Dealership
You may not realize just how crucial it is to have auto financing for dealers, but it can be a boon to your business for many reasons. Here are just a few.
Expands Customer Reach
One of the biggest reasons we suggest that owners of dealerships have financing options for their customers is so that they can engage with a much wider range of customers. Having your own financing solutions allows more customers to purchase from your business, where before they might not have had the opportunity to do so through their own bank or credit union.
Credit scores are consistently one of the biggest obstacles that come between customers and the cars they want at dealerships. More often than not, potential customers with lower credit scores are turned down by their banks, making them think they don’t have many other options. By offering financing programs through an outside company, customers with lower credit have a much better chance at securing loans and even better pricing on them.
Helps Against Competitors
If your business doesn’t offer dealer lending, you are not only neglecting a large amount of potential customers, but you are also giving competitors that do offer dealer finance solutions an edge over your company.
One of the hardest parts about making a deal is securing the financing. More often than not, at dealerships without dealer finance solutions, customers find a car they would like to purchase and then when they find out that there are very limited financial options, they have to break the deal and go somewhere else that offers better programs for their current situation.
Another beneficial aspect of dealer financing programs is their ability to increase both business and revenue for your company. Because you are able to reach more customers with your financing services allowing varying credit scores, you are also increasing your revenue. With more customers, of course, comes more business and more profit for your dealership. Also, when working with a good partner, loans can help increase your business’s profit as well.
Convenient for Customer
Offering in-house financing services for your customers makes the buying process much easier for them. This cuts out the entire process of your customers having to go to their own bank or lender to try and apply for a loan. Dealer lending also results in higher, quick approval rates for a wider range of customers, making it much more convenient and also cutting out the middle man.
These in-house financial lending services offered by independent dealers are almost always through professional third parties like us here at Red Mountain Funding. A dealer can run the buyer’s credit score through multiple different services in order to try and find an option that the both of them can agree on. From there, then the customer can apply for the loan. What’s also great about in-house financing services at dealerships is that the business sometimes has multiple options through their lender. This allows the customer to decide what option they think might be best for them.
Why Red Mountain Funding for Your Independent Dealership?
We at Red Mountain Funding offer some of Arizona’s most trusted auto financing. We understand how difficult it can be to try and find dealer financing solutions that are right for you and your business. That’s we why offer a multitude of differing finance solutions so that you can choose what you think will work best and also help you reach the most customers.
Money can be daunting for both business owners and customers alike. Credit scores and previous debt can be giant obstacles for potential customers coming into your business, but you don’t want that to drive them away. At Red Mountain Funding, we can get almost anyone approved for a loan. We provide high quality, friendly services to help you and your business succeed, all while making your customers happy and helping them get the car of their dreams.
Financial Services for My Business
If you’re looking for a trusted financing company to help you and your customers at your independent dealership, then Red Mountain Funding is the company for you. We are one of Arizona’s top auto financing companies, and now we work with dealers in California, Florida, and Las Vegas, too! For top-notch financing services for independent dealers, contact us here or call us today at 1-480-497-8488!
We aim to help car and truck buyers get the financing that best fits their budget.