Ted Lam is the Founder and CEO of AITHR Automotive Intelligence. Ted has a wealth of experience in the industry, including a background in the non-prime market and a fascinating story about why he decided to build a software for dealers.
In this episode we're taking a different angle on the topic of non-prime conversations. We're going to talk about how to create a prime experience for subprime customers in your dealership.
It's important to remember that subprime customers are not archaic, and they deserve the same level of service as any other customer. One way to do this is to empower your sales team to educate themselves about credit and finance. This not only makes them better equipped to serve subprime customers, but it also makes them better salespeople overall.
Ted shares his unique approach to making the car buying experience a success for all parties involved.He explains that his store had four different processes and four different ways to approach customers, based on their personality type. This allows the dealership to tailor the experience to the individual and make it as smooth as possible. He goes on to give the example of an engineer personality, who just wants to eat, lunch, and leave. By understanding and catering to this type of customer, the dealership can ensure a positive experience.
Another key strategy is to train your sales team on how to be listeners. In the subprime market, the role of a salesperson is to be able to empathize with their customers and truly understand their needs. This requires not just knowledge of the product, but also the ability to actively listen and understand the customer's situation.
One way to create a prime experience for subprime customers is to start the process early. Just as it's possible to get preapproval for a mortgage, it should also be possible for customers to get preapproval for a car loan. This allows them to shop within their budget and avoid the disappointment of being denied financing later on.
It's important to remember that the culture of your dealership is key. If the sales team feels pressured to sell cars at any cost, they are less likely to provide a positive experience for subprime customers. Empowering your team and creating a culture of transparency and honesty is essential for success in this market.
So if you're looking to improve your dealership's performance in the subprime market, consider investing in some sales training or using A I T H R to help your sales team succeed.
Ted also touches on the current market conditions in Canada and the impact of government stimulus and inflation on the auto industry. He shares his outlook on the decline in wholesale values and used car vehicle values, and how it pertains to the industry.
Listen to the full episode for insights and context from Ted Lam!
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