understanding the sub-prime consumer in the digital space
TRANSCRIPT
Understanding the Subprime Consumer in the Digital Space
Todd Dearborn VP, Sales & Operations
The Subprime Opportunity: An Overview
Source: Experian Automotive 0%
10% 20% 30% 40% 50% 60% 70% 80% 90%
100% Used Loans
Super Prime Prime NonPrime Subprime Deep Subprime
11.21%
34.77%
22.38%
25.24%
5.40%
168,302 Subprime Leads Submitted
13% buy new vehicles 30% buy within 90 days
Ready to buy!
New: $1,200 Used: $2,400
Subprime: $3,500
Gross Margins
Lender Dynamics: Who to Work With
Top 10 Subprime Lenders 1 Capital One Auto Finance 2 Santander Consumer USA 3 Wells Fargo Bank 4 Ally Bank 5 Credit Acceptance 6 JPMorgan Chase 7 Westlake Financial Services 8 AmeriCredit Financial Services 9 Regional Acceptance
10 Chrysler Financial
Top Subprime Lenders Atlanta DMA
1 Santander Consumer USA 2 Capital One Auto Finance 3 Wells Fargo Bank 4 Ally Bank 5 GCF Lending 6 Exeter Finance 7 Chrysler Financial 8 Consumer Portfolio Services 9 JPMorgan Chase
10 Credit Acceptance
Inventory Dynamics: What to Stock
Top-Selling Subprime Inventory: Nationwide Rank Model Year Make Model
1 < 2011 Ford F150 2 < 2011 Honda Accord 3 < 2011 Chevrolet Impala 4 < 2011 Chevrolet Silverado 5 2014 - 2017 Nissan Altima 6 < 2011 Honda Civic 7 < 2011 Dodge Ram 1500 8 < 2011 Ford Explorer 9 < 2011 Nissan Altima
10 2014 - 2017 Toyota Corolla 11 < 2011 Toyota Camry 12 2011 - 2013 Nissan Altima 13 2011 - 2013 Hyundai Sonata 14 < 2011 Ford Taurus 15 < 2011 Chevrolet Maliby 16 2014 - 2017 Chrysler 200 17 2014 - 2017 Nissan Sentra 18 < 2011 Jeep Grand Cherokee 19 2011 - 2013 Ford Fusion 20 < 2011 Ford Focus
Top-Selling Subprime Inventory: Atlanta DMA Rank Model Year Make Model
1 2014 - 2017 Toyota Corolla 2 2011 - 2013 Hyundai Sonata 3 2014 - 2017 Toyota Camry 4 2014 - 2017 Nissan Sentra 5 2014 - 2017 Nissan Altima 6 2011 - 2013 Nissan Altima 7 2011 - 2013 Ford Fusion 8 < 2011 Honda Accord 9 2014 - 2017 Kia Forte
10 < 2011 Chevrolet Impala 11 2014 - 2017 Nissan Versa 12 < 2011 Ford F150 13 < 2011 Honda Civic 14 2014 - 2017 Hyundai Accent 15 < 2011 Nissan Altima 16 2011 - 2013 Kia Optima 17 2014 - 2017 Hyundai Sonata 18 2011 - 2013 Ford Focus 19 2011 - 2013 Chevrolet Malibu 20 < 2011 Toyota Camry
Case Study: Angela Krause Ford
The Subprime Sales Process: Best Practices
The Waterfall Ratio
100 Leads 80 Contacts 40 Appointments Set 20 Shows 10 Financing Approvals = 5 Cars Sold
1) Know which lenders to use when
2) Source the right inventory
3) Sales process: BDC & right software
The 3 Legs of the Stool
ü Sell to all customers ü Build customer loyalty ü Retail more units
Benefits
Bonus: What It Sounds Like
