Lending Curve

I read an article recently on how to drive more indirect lending and was honestly shocked by the lack of understanding of the automotive dealership space. Tips included holding contests to pit dealerships against each other, holding annual golf tournaments where dealers can be sponsors, passing out branded gimmicks, and monitoring dealer activity and following up when you see trends you don’t like.

While the article did sprinkle the message throughout for lenders to be actively engaged with dealerships, it did not give proactive examples of how to achieve active engagement. Lastly, and perhaps most shockingly, the article directed lenders to prioritize their goals above dealership goals, going so far as to say, “Do what’s right for the lender, not what is right for the dealership.”

Here’s the real secret that the truly successful indirect auto lenders don’t want you to know: increasing your indirect auto loan volume is as simple as aligning your goals with dealership goals. You want more business. Great, so does the dealership. Rather than looking at how to market to dealers, take the time to evaluate how to cultivate a lasting business relationship with them.

Dealers don’t need another golf tournament to sponsor, or the added pressure of a competition with the dealership across the street. They are already competitors, and if you’ve ever met a dealer, you know that competitiveness is in their blood. What dealers need is a way to make them better than the competition. This is where lenders can plug in. Think about the dealerships you work with and ask yourself, “How can I help differentiate them in the market?”