What are “Buy Here Pay Here Auto Leads”?
This term is used in reference to car leads that are generated using in-house financing advertisements by a leads generating company. Basically, a company pays for advertisement and builds a website to attract people interested in buying cars through in-house financing. Once the applicant hits submit, their information is called a “lead.” This lead can be sold to interested car dealers. The customers’ information is reviewed by the dealers and if they like the lead, they automatically buy it for a nominal fee.
How can they help?
Many dealers choose to use car leads, in general, to save on advertisement costs. With billboards, TV/radio ads, and magazine ads, there are no guarantees for the number of leads created. So dealers often find themselves paying a lot for advertisements but producing little results. However, by buying leads, dealers get the chance to set a specific amount of cost knowing that each dollar spent is for leads that are already prepared.
What things to be aware of?
There are three main problems that dealers run into when buying their leads. First, there is the reliability factor. Some companies sell some authentic leads among hundreds of fake leads. With fake leads, we mean that the leads are of made up customers or random people whom never applied for car loans but applied for other products online.
Second, is the time issue. If the customers fill out an application, they expect that someone will contact them soon. But if the leads generated take too long to be sold, they become old and there is a chance that the customers have already found alternatives or no longer need the loans.
Third, is whether the leads are exclusive or not. This is a common practice by some lead generating companies to make higher profit. They sell the leads dealers and then turn around and re-sell them again to other dealers. This can cause rivalry and usually the customers feel annoyed as many dealers are all calling them. Also the dealers feel betrayed because they call the customers but are told that they just got a call from the dealer across the street and lose the lead that way.
Steps for dealers to safeguard their leads:
First, is to simple ask the client if they actually applied to and were interested in the purchase of a vehicle. Second, is for the dealer to check with the clients if they have been waiting for a long time for a call back. Third is to see if their dealer was the only one who called the client in question. The dealers should do the same with all the leads bought. It is easy to detect because after calling like five customer, if only one had applied to a car loan, then the dealers can assume that the leads are not top quality. However, if the outcomes are within decent expectations, then the dealers can trust that lead company.