Think of this T.V. ad dialogue. “Here at XYZ Motors we value our relationship with our customers. That is why, on our website, we will give you an idea what you can finance without asking for your Social Security Number, Date of Birth, and this inquiry will have no impact on your credit score. When you come into our store we will not ask you then either unless you are sure of which car you want to buy. We realize your personal information is very sensitive and take security very seriously. So, come to the dealership that shows they value you as a customer.”
Of course, this could be relayed in any type of advertising. It is already being heavily used with email and direct mail. We also know that the increase in website leads attributed to this process is already being enjoyed by hundreds of dealerships.
How exactly does this work? Through the use of soft pull technology with the credit bureaus the information needed only requires the name and physical address. The phone number and email are only collected for the dealership for lead follow up. The dealership receives a real time score, any derogatories, and all the outstanding current vehicle loan data. This is used to work with the dealership’s credit tiers to display almost immediately the best interest rate and highest amount to loan in that tier. The prospect gets to see what their financing potential is at the dealership and the dealership knows up front what they are working with credit wise with their prospect.
This process takes what is usually an uncomfortable situation at the dealership (when sensitive data is asked for) and turns it into a positive process for both the prospect and the dealership. The days of spending an hour with a prospect just to find out they can’t qualify are over. Or, if you run hard pulls early in the sales process this dramatically reduces the cost of the credit pull along with all the regulatory requirements that go with the hard pull (OFAC, Red Flag, RBP, etc.) unless they purchase the car.
This is a rapidly growing process that quite frankly, will soon put you at a serious disadvantage if you cannot offer it. Who would you rather buy from? The dealership that treats your personal data with care or the one that has to have your Social Security Number to properly discuss which car you should be driving?
Vice President of Corporate Affairs at Credit Miner
Please feel free to contact me at email@example.com if you would like to learn more.