Helping You Drive Away Today Since 1991
Consumer debt is nearly out of control in the United States today. The average U.S. household has nearly $ 9,000 in credit card debt, according to market research firm, CardWeb.com. Federal Reserve data states that, in 2004, Americans were more indebted than ever, owing through the first quarter nearly $9 trillion in home mortgages, car loans, credit card debt, home equity loans and other forms of personal borrowing. Today, it is reported that “consumer credit as a percentage of personal income has never been so high.”
For savvy used car dealers, these gloomy economic headlines can translate into a tremendous opportunity. The “unbankable customer” refers to any consumer that visits a dealership and does not qualify for a conventional lending program. And the growth rate of this segment is accelerating! As a result, the buy-here, pay-here market is booming.
According to leading automotive research firm, CNW Marketing Research, “ten years ago, about 17.8 percent of new car loans issued were sub-prime. By last year (2002), that number had nearly doubled to 31.5 percent.” Chris Leedom of Leedom Associates, a firm that advises car dealerships nationwide, maintains, “There’s no question ... one segment of sub-prime lending, the buy-here, pay-here industry, is growing like wildfire.”
The Buy-Here Pay-Here Opportunity
Automotive industry monthly, Ward’s Dealer Business, proclaimed, “well-capitalized buy-here, pay-here dealers are recognizing double digit growth. The buy-here, pay-here market is alive and well.” Yet, despite the fact that it’s a $228 billion market, only 30% of franchised dealers delve into the sub-prime area.” This untapped market potential presents an attractive business opportunity, especially in light of the fact that over 40% of Americans have some sort of credit problem today.
Could you be a driving force in the used car business?
Maybe you’ve always been a “car person.” Or, perhaps you’re a “numbers person” with a background in finance. If you’re a natural salesperson who can relate to customers from all walks of life… if you’re an energetic problem solver who’s as good with people as with numbers… then you might be a perfect fit for Automatic Car Credit. It would certainly be worth a phone call to find out!