While 36% of the people that purchase cars are able to do so outright, others are not in the position to do so. When people have good credit, they are able to finance their vehicle purchases more easily. Recent figures indicate that this applies to approximately 43% of individuals that have recently purchased cars.
Car Loan Interest Rates
On an annual basis, $98 billion in revenue is generated due to the interest associated with auto financing. During the period of May 2014 to May 2016, for example, car loan interest rates rose. In May 2014, they were 4.3%, and by May 2016, they had risen to 4.25%. Recent figures indicate that the average auto loan interest rate is currently around 4.16%.
There are different durations for new-car loans. The average duration, however, has increased to 66 months. When these loans are for used cars, the duration has risen to 62 months. In both cases, this is considered to be a record time period.
Since monthly car payments have risen and become more costly, some lenders have been writing more 5-year, 6-year, and 7-year loans in order for buyers to be able to afford to purchase a car. it’s interesting to note that on average, many borrowers have incurred $17,996 in automobile debt.
Subprime Auto Financing
A person’s credit score is a determining factor in whether or not they can qualify for a car loan. When they have a credit score of 500 to 600, they are considered to be subprime. Individuals with credit scores of 300 to 500, however, are considered to be deep subprime.
Help Your Dealership Expand with Subprime Auto Loans
Every year, subprime financial interest generates $10 billion in revenue. Many potential buyers may search for online car loan leads, low credit score leads in particular. Subprime auto dealer leads may appeal to these potential buyers for a variety of reasons. Whether they’ve already been turned down for new or used-car financing, or unable to save sufficient funds to purchase a car outright, these types of loans appeal to them.
If you’re interested in expanding your business, you may want to consider auto dealer lead generation for subprime customers. When prospective car owners visit your online website, they will be able to locate new leads for auto loans. Furthermore, auto dealer leads of this type may assist you with increasing your sales and revenue substantially.