Life can be unpredictable. Even the most diligent planner can be thrown into chaos by an unforeseen event. When it comes to finances, a black swan event is a prime example of this reality. Black swan events can create massive damage to an economy by negatively impacting investments and markets, and even advanced modeling cannot prevent or accurately predict these occurrences.
Sometimes, analysts can use historical data and trends to predict future market outcomes, for good or for bad. But when unforeseen circumstances arise, such as a global pandemic, no preparation can really help.
Understanding Your Customers
When unforeseen circumstances hit, it can cause long-term damage to someone’s credit. Even if they had great credit in the past, one financial tragedy could set someone back years on their credit. But these individuals aren’t necessarily high-risk customers when it comes to financing.
At Medallion Bank, we understand the importance of seeing the whole picture. When we look at someone’s credit history, we can see if they were impacted by an unforeseen event, or if they have a pattern of risky financial behavior. In the former case, these individuals may have completely recovered financially and now just need to rebuild their credit.
When you understand this about your customers, you can see why it’s so important to offer non-prime recreation loans. It gives your dealership an opportunity to expand your market of potential buyers with no extra effort.
Use Non-Prime Financing to Grow Your Dealership
As people within the subprime credit market work to overcome credit challenges, RV and boat dealerships can capitalize. Creating a great experience for this market can lead to long-term success. If they see they can get approved with subprime credit, they are more likely to recommend your dealership to friends or family in similar circumstances and to come back when their credit is repaired.
Dealerships that don’t offer subprime financing options are limiting their revenue potential. When dealers partner with Medallion Bank, they can sell more products to more people without assuming any additional risk. If you are interested in offering subprime consumer financing to your customers, learn more about signing up as a new dealer with us here.