How to Market Used Cars to Subprime Market

In recent times, incentives to buy a new car has dwindled considerably, this has given way for the used car market as more people from all income brackets are now looking in that direction. When targeting the subprime market, there is need to have an insight into the mindset of these set of people with credit issues and do not have money for a down payment so as to get a new car. By conducting a proper research, targeted promotion, pricing, and consumer education you can market to the subprime market effectively for your business.

Research

You can research the demographics of people living in your area by targeting the zip codes of those within a 20 mile radius of your auto dealership. For instance, if the average age of the people in your area is between 20 and 40 and they make less than $35,000 per year, they may be unable to afford to buy a new car as they can’t meet up with high down payment. These set of people in this demography are more likely to be subprime customers. The demographics of people living in your area can easily be obtained by using the Census Bureau’s free research or by doing a personal tour of the area to understand your market.

Price Determination

There are some financial barriers that are usually encountered by subprime customers, some of which are down payment, cosigner, and more. You can encourage subprime customers to your used car dealership by reducing down payment, not requiring a cosigner or offering incentives such as gift, cards to a local restaurant, gas cards, and special holiday experiences. This may not be feasible if your business is not stable but you can also visit other dealerships to know what your competitions are offering. When you do your break-even analysis, you will be able to know how much must be made from each car sale to make a profit. The price you should settle with will be one that is a balance between understanding what you need from each sale and knowing your competition to operate successfully.

Consumer Education

A lot of consumers in the subprime market category do not usually purchase a vehicle in part because they are not aware of their options. This is according to a 2002 report by the Progressive Policy Institute. Your marketing should be centered around letting consumers know that having an income is more important than having credit and that there are some lenders still willing to lend to people with bad credit. You can help them to understand it is possible for them to have a new beginning and build their credit with their car purchase.

Targeted Promotion

There are ways you can target where consumers are more likely to find your used cars and news of your financing options. You can advertise deals on sites such as eBay, Amazon. Craigslist, and Oodle. Also, you can interact with social media sites such as Twitter and Facebook to find those who are talking about buying used cars in your area.

Video Marketing Ideas and Tips for the Automotive Industry

Regardless of what you are selling (including automobiles), using a video is the rage these days. Most people now prefer watching videos to reading or listening. That is why in this guide, you will discover top five automotive marketing ideas and the top five tips to make your car marketing videos stand out.

5 automotive marketing ideas

If you want to sell more cars, here are video automotive marketing ideas you should implement;

  1. Videos that contain valuable info and tips

The main goal of this type of video is to prove your knowledge about cars to your target audience. A good idea is to always include a relevant call to action at the end of your videos. An example of a relevant call to action for a ‘tips’ video can be “new more info on top cars currently for sale? Click here”

Here are three examples of videos you can make that contain valuable info and tips;

  • Tips for a large family when they intend to buy a car
  • Tips for keeping the interior of your car in good condition
  • Tips for buying a used car alone or when using a car dealer.
  1. FAQ videos

You can create FAQ videos based on the questions you receive or based on the questions buyers have asked you in the past. This is the easiest type of video you can make. You only need to provide answers to the common questions you are being asked.

The questions don’t necessarily have to be on your video channel, it can be questions asked via emails and even through phone calls. A good rule of thumb is to answer a maximum of two questions per video. Remember that title of your video is important to the search engine.

So, if you want your videos to appear in search engine results, you answer a maximum of two questions. I suggest answering one questions provided it will be enough for a 3-minute length video. Read more.

Other Ideas are;

  • Comparison videos
  • Product review videos
  • Testimonial videos

5 tips to make your car marketing videos stand out

  1. Simple is effective

There is no need to hire a professional videographer to make your videos, you can use your phone provided its quality is high enough.

Make short and simple videos, they have been proven to be the most effective.

For clarity of purpose, you can one video that highlights only the safety features of a car, and another one that highlights only the performance features of the same car.

  1. Start and end all your videos with a display of your store’s front

This will increase your brand’s awareness with your target audience. One other of increasing your brand’s awareness with your target audience is to ensure that any person that appears in the video introduces himself and his role in your auto dealership. For example, “hi friends, my name is Jim Belkin, branch manager at Jim’s autos. In this short video, you will discover the safety features of the 2019 Mercedes g-wagon.”

As always don’t forget the call to action at the end of each video. Your call to action can be an invite to a customer interaction with your followers on social media, checking your website for auto deals or even visiting your showroom physically.

  1. Be human

By using humans in your videos, you will create a more personalized car-buying experience for your audience. Viewers are able to put a face to the name, engage with him and consequently, make your video more credible. Don’t use PowerPoint slides with a voice-over; rather I suggest you feature someone from your office to do the taking. Check out this site: http://www.turbomarketingsolutions.com