Sales leads are important for any business to strive and succeed. These are considered the beginning of any business correspondence and in case of successful correspondence, result in a sale. The name of the leads change according to the business they are related to and for the automobile industry, these are termed auto leads. Similarly for the lending industry, they are termed finance leads. However, the lending industry was largely affected by the global recession that took place recently. This drastically reduced the number of general loan borrowers and increased the percentage of special finance borrowers. These consumers are termed as special finance leads.
The recession left behind so many pay cuts, layoffs and bankruptcies that it has become very difficult for a lender to just cater to people with a good credit score. In fact, as most banks only cater to these clients, more and more dealerships are looking for special finance leads to give finances to people with a low credit score. Although there is a large risk involved, the profits are also higher. It is a known case that the rate charged by the lenders or dealers in case of low credit borrowers is higher than the normal. Some do it to earn their money back as soon as they can while others just wish to make more money.
Whatever the case might be, the fact remains that most people know that the interest rate would be high in special finance leads. Therefore, more conversions can be made in case a special rate is given to the consumer who has had a good record of credit payments before the bad phase occurred. This also enhances the dealer/lender’s word of mouth publicity which can further enhance the special finance leads.
Tags: Special Finance Leads