Selling Value to Your Subprime Customers

I tend to think that the one thing that universally seems to motivate people are pictures of Washington, Lincoln, Hamilton, Jackson, Grant and Franklin. These are the guys that appear on our money.

Value is what a customer looks for. Build value in what you can do for them. In Subprime, the value is more than just getting a vehicle. There is substantial value in a customer’s ability to rebuild their credit. You have to show them how credit problems can affect not only their auto loan but may also have an impact on their:

• Car insurance - Some companies base auto insurance premiums on credit scores.
• Cell phones - Providers increasingly rely on credit scores to sort the good risks from the bad credit.
• Elective medical procedures – Some doctors pull credit to see if you qualify for the monthly payment plan.
• Employment –Many companies will check credit before they decide to hire a candidate.
• Education – Low credit scores can disqualify applicants for university and federally funded student loans.
• Housing - Rental property owners may reject tenant applications with poor credit scores.
• Marriage - You can't marry your way out of a bad FICO rating. A married couple does not get a combined credit score.
• Utilities - Slow credit indications may require a sizable security deposit before utility service can be established

Many customers don’t realize that bad credit can affect almost every aspect of their life. What’s the value in helping them fix it? How many “presidential portraits” can they save by improving their credit? We probably are talking about hundreds, if not thousands of dollars, in their pockets.