Client are asking; “Is there a Required Credit Score Limit to Buy a Car?” The answer is NO! A bad credit score is typically not restricted in getting a car financed, but to get lower APRs, one must have better credit.
The minimum acceptable credit scores will often depend on the lender, but dealerships typically roam around 620 credit scores. Nevertheless, many lenders wouldn’t mind working with people with lower-than-average credit scores as long as the client can afford to make their payments on-time and are fine with higher interest rates.
Vast majority of lenders look at client’s FICO scores when determining whether to approve loans or not. Since the first step in starting the process of purchasing a vehicle is to find out the client’s FICO score, providing them with what a good APR is within their credit range, and the appropriate steps they can take when seeking out a car loan should be PART OF THE JOB.
Most clients are unsure how to check your FICO score. The car salesman should be able to assist them with this. You may need a system to help your clients become exceptionally happy with all the other services you offer i.e. Credit Restoration for deletions of inaccurate items, Credit Builder for maintaining positive habits in adding impactful tradelines, Credit Monitoring for tracking the progression of their credit scores, a Credit Attorney available at their fingertips in case of difficult and emergent disputes, a DebtZero to help them pay down some of their debts in a timely and effective manner in order to boost their credit limit ratio in a significant way.
If you find that your client’s FICO score is lower than they thought, hep them to not be rattled by it.
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With the available resources these days, it’s easier than ever for them to get a loan.
If you’ve already discovered that your client’s credit score falls into the critical range i.e. less than 620 for most lenders, then suggest to them that they’re better off starting with companies specializing in approving these car loans with low credit scores or that you can help them get an excellent credit score to qualify for better rates on the best vehicles.
As a car dealership, you already know that a lease usually involves lower monthly payments and might seem like an attractive option for the client, however, particularly for people with very low credit scores, this arrangement sometimes has more downsides than its perceived benefits.
Typically, it can be more difficult to qualify for a lease than for a car loan. Nevertheless, many lenders prefer not to lease vehicles to people with bad credit. This most likely leads to asking for larger down payments than usual and a high interest rate charge.
Some of the lenders might even require more frequent payments. Instead of the usual monthly payments, the client may be required to make payments every week or every other week.
The general rule of thumb I the automobile industry is the lower your credit score, the higher the interest on your auto loan. This, obviously, means that any new car will typically cost the client more in the long haul.
This is why people with excellent FICO scores i.e.720 and higher pay an average 3.336% interest rate for a 60-month new car loan. This started in August 2016. On the hand, people with low FICO scores i.e. 589 and lower are charged a whopping 14.806% in interest over the same term.
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Can you see why this is a big problem that needs to be solved? And you can solve it. You just need the tools to do it. You owe it to your clients to help them tackle this obstacle in the way. Otherwise, it’ll keep lingering around them anywhere they go.
We have a system that will help you provide a credit restoration service to your client with no overhead i.e. no office space, extra employee, no software etc.
If a vehicle is costs $18,000, it will cost people with excellent credit $326/mo. for a total of $19,568 over a 5-year period at 3.336% interest. Meanwhile, their counterpart with bad credit will end up paying 14.806% interest rate without a down payment will come out to $426/mo. with an ending total spend of $25,583 for the same car.
That’s more than a $6,000 difference. Most people won’t fall in the highest or lowest category.
Let’s assume a client is worth $10,000 to you, on average. If you lose just 5 of those in a month, you would have lost $50,000. You must learn to engage clients with precision and compassion using the tools we’ve highlighted to you in order to keep clients coming back to you and sending you referrals from all corners.
Why not have that in your arsenal and earn money with it as well?!
There will NO need for you to master how “Credit Repair” works either, in order to use the tool. All that has been done for you, so you can easily focus on the actual services that you’re best at and provide to clients. We do the “Restoring” of credit for your clients. You get a website portal that enables you to place them in the system for the Credit Restoration process.
They can be in your pipeline for the period of completion of their car purchase. And you earn while their credit is being restored.
Does it really matter whether your clients have great credit or poor credit if it affects many parts of your business i.e. from closing a sale to getting referrals and creating a network of happy clients? The simple answer to that is... HECK YEAH!!!
You MUST understand credit (not credit repair), and how you can use that weapon to close more sales and help your clients get the car they deserve.
Add Credit Repair to Your Car dealership business Today >>> https://www.ihopefinancial.com/start-your-credit-repair-business