The Importance of Funding Solutions for Car Dealerships

Offering diverse, accessible funding solutions to customers is an important step in running a profitable car dealership. As many as 50% of car buyers purchase their vehicles through an auto loan, and the figure may be as high as 85% for new car purchases. Without dealership financing, you will quickly lose business to competitors and struggle to stay afloat in the current market. 

Explore the importance of car dealership funding, then turn to Edge Financial Services as your trusted financial dealer.

Why Is Offering Car Dealership Funding Important? 

As many as one in two car buyers rely on car dealership funding to purchase vehicles. Without adequate financing options, half of your potential customer base wouldn’t have the financial means to buy cars from you. 

Below are just a few of the reasons why offering auto loans is important to your dealership. 

Expand Accessibility to More Customers

Offering loan options through your dealership broadens your audience significantly. Instead of only appealing to buyers who can pay out of pocket or qualify for bank loans, you can target customers who may walk into the dealership without the means to purchase a car outright. This includes visitors who only intend to browse. 

The wider your audience, the more customers you will inevitably land. Making your inventory accessible to more people will only benefit your dealership's sales and revenue. 

Simplify the Payment Process

Some potential buyers who walk into your dealership are not financially savvy. They may be young adults who have never made a major purchase before or individuals without much credit history. For these buyers, the typical lending process may feel overwhelming or confusing.

Buyers may not feel confident applying for car loans before coming to your dealership. By offering in-house car dealership funding solutions (or connecting them to your financing partners), you can simplify the payment process and bring buyers one step closer to closing the sale. 

Potential buyers do not need to come to your dealership with loan information in hand. Your salespeople and financing office can walk them through the entire purchase, and they can drive away in their new vehicle. 

Minimize the Financial Burden of Car Purchases

Owning a vehicle is a modern necessity for many people, especially in areas without widespread public transportation. But purchasing a car outright is a significant financial investment, especially in today's car market, where prices are higher than ever. Many people do not have the means to buy a car with cash, and even if they do, they need that money for emergency savings or other necessities. 

Auto financing minimizes the upfront financial burden of buying a car. Many customers feel much more comfortable spending a few hundred dollars a month on a car loan compared to dropping tens of thousands of dollars on a vehicle at one time.   

Close More Sales 

Ultimately, the more funding solutions you offer to buyers, the more sales your dealership closes. This leads to greater revenue that you can use for growing your dealership and expanding operations and inventory. 

Your business will be more sustainable when you consistently close sales with financing compared to closing only a fraction of those sales with cash vehicle purchases alone. 

Improve Your Dealer Financing With Edge Financial Services 

Car dealership funding is no longer optional for dealerships looking to stay afloat in this economy. More customers than ever rely on financing to purchase vehicles. Offering a range of funding solutions, especially loans for buyers who may not have credit approval elsewhere, can go a long way toward increasing revenue. 

At Edge Financial Services, we specialize in subprime financing for borrowers with low credit scores or insufficient credit histories. We can maximize your customers' chances for approval by providing worthy borrowers a second chance for car dealership funding.