According to research from the U.S. Public Interest Research Group, as many as 85% of all new car purchases in the U.S. were financed in 2019, up from 75% in 2009. This figure is likely higher now because of rising car prices and consumer debt. This makes access to diverse lending options increasingly important for dealerships serving varied financial circumstances.
When customers walk into your dealership, you can often assume that they will use financing to purchase a vehicle. Investing in flexible financing for car dealers can help you expand your customer base and ultimately land more sales.
When customers apply for financing to purchase a vehicle, lenders review a range of factors to determine eligibility, along with the interest rate, loan length, and other terms. This means that every customer will have a slightly different experience, and not all types of financing will apply to everyone.
Offering a range of options helps you appeal to customers with different budgets, credit scores, and financial needs. If you're looking to expand your customer base or increase sales, here are some benefits your dealership can gain by offering flexible financing.
Some auto financing options feel restrictive and don't align with customers' budgets. For example, you may offer financing options with a maximum term of 36 months. For customers with tight budgets, short loan terms can make it hard to keep monthly payments affordable.
By offering flexible auto financing solutions, you give customers more options and help them maintain control over factors like monthly costs, loan terms, and even interest rates. If a customer arrives at your dealership knowing they need to keep the monthly payment under $300, for example, you can search through your financing options and match them with loans that meet that requirement. Some of these loans may have longer terms, while others may have lower interest rates.
Customers also arrive at your dealership with a wide range of financial backgrounds. If you only offer a few financing options, those with low credit scores or other red flags in their financial histories may not qualify, meaning you will lose their business.
This is one of the biggest ways flexible financing helps car dealerships expand their customer bases. The more financing options you offer, the more potential customers will qualify. And when these low-credit-score customers qualify for several types of auto loans, they can choose the best option for their financial needs and have more control than they would if only one or two options were available to them.
Customers often look for flexible payment options that fit their unique financial situations. When they learn that your dealership offers a range of financing solutions, they will be more likely to purchase a vehicle through you than the dealership down the street with more limited lending opportunities.
Flexible financing helps you attract more customers and strengthen their loyalty. The next time a customer needs to buy a vehicle, they will remember that your dealership offers a range of customizable options that fit their financial situation.
Your dealership may not always have control over factors like vehicle affordability and pricing, but you can control the financing options you offer your customer base. At Edge Financial Services LLC, we understand the importance of funding solutions that work for your unique customers. We offer financing specifically for customers with challenged credit who may not qualify for traditional auto loans.
We always look for ways to make a deal for our clients and can help you expand your customer base with flexible financing options. Contact us today at 866-890-2415 to learn more.
Dealerships need more than funding–they need a financial partner that understands the complexities of operating and growing within the automotive industry. At Edge Financial , we take pride in building lasting relationships that help dealers achieve both short-term goals and long-term success.
Our dealer-centric approach means we focus on understanding your business before recommending solutions. We work alongside dealerships to identify opportunities, overcome challenges, and develop financing strategies that support sustainable growth. By offering multiple financial solutions through a single relationship, we help simplfy the path toward expansion and profitability.
We are committed to delivering responsive service, industry expertise, and dependable financial solutions that help dealerships operate with confidence. When dealers choose Edge Financial , they gain a partner dedicated to helping them succeed through every stage of growth.
If your dealership is looking for more than a traditional lender, Edge Financial is ready to help. Through our dealer-centric financial ecosystem, we provide the financing solutions, resources, and strategic support dealerships need to expand opportunities and achieve long-term success.
Whether you're interested in portfolio acquisitions, point-of-sale financing, floorplan financing, or dealer credit facilities, our team is prepared to help identify solutions that align with your business goals. We believe the strongest dealership relationships are built through collaboration, trust, and a shared commitment to growth.
Serving dealerships throughout the U.S., we are focused on helping clients increase flexibility, improve profitability, and access the capital neccessary to pursue new opportunities. Our integrated approach allows dealerships to work with one trusted financial partner instead of managing multiple providers.
Contact Edge Financial today at (866) 890-2415 to learn more about our dealer-centric financial ecosystem that discover how our team can help support the future growth of your dealership.
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