In today’s economy, customers are looking for financing products that allow them to spread the cost of new vehicle purchases over many months, instead of paying the full price upfront. Firms and dealerships that sell vehicles, however, don’t usually offer financing themselves. Instead, they work with third-party financing partners, like us, to provide the necessary systems and support.
But how do you know that vehicle financing is a good option for your business? In this post, we find out.
Check that vehicle financing is right for your business
While most dealerships can benefit from vehicle finance, it all depends on whether it is a good fit for your customers and business. Think about what financing options you offer your customers already, and whether improving your suite of options could generate more sales.
Consider the type of financing that you want to offer
The next step is to think about the type of financing that you would like to offer. Consider the costs associated with it, such as training your employees and whether the finance products available through your partners are scalable. You may also want to consider any third-party financing fees that merchants might charge as a percentage of each transaction.
On the customer side of the equation, consider whether your financing partner offers sufficient flexibility in what can be financed. For instance, consumers may want to borrow small amounts, or they may want to spread out payments over a longer period.
Integrate financing options with your sales channels
Whether you decide to work with a partner or offer financing in house, you will still need to modify all of your sales channels to reflect new payment options. For instance, you may need to update your website check-out or link your POS system with third-party financing platforms. You may also need to adjust your product pages on your website to reflect both the upfront cash cost and the cost of the item or service per month.
Tell your customers about your new financing option
Lastly, all that’s left to do is advertise your new financing options to your customers and clients. You can do this directly via your website, or even better, via social media and your other outreach channels.