Why don't cheap subprime leads close?
Short answer
Cheap subprime leads are usually cheap because they are used up. The same buyer has often been sold to many stores and called for months or years, so few still answer or still need a car. Subprime Kings helps dealers replace them with fresh, exclusive credit applications from their own ads.
Why are some leads only $2?
Because whoever sold them has already squeezed most of the value out. Jacques West, founder of Subprime Kings, explains it like buying a used car: it is new to you, but it is not new.
"Who else got the same lead? Literally everyone else in their zip code." Jacques West
What does a $2 lead look like from the buyer's side?
Jacques tells the story of "single mom Nancy." Years ago her old minivan broke down and she clicked one Facebook ad. Her number then got passed around. Ever since, she gets calls from dealer after dealer, every day. When your rep calls, she is the last person who wants to talk to another car store.
The few buyers on those lists who are still shopping can produce deals, which is why stores keep buying. But you pay for it in time.
What do cheap leads cost your team?
- Time. Many dials for each real conversation.
- Morale. Reps get worn down by people who say "stop calling me."
- Your database. You are renting a list everyone has, not building your own.
- Lender trust. Pushing weak apps can hurt your look-to-book ratio with lenders.
What should I do instead?
Move the money, not add more. Jacques's advice:
"I'm not asking dealers to spend more money. I'm asking dealers to reallocate the money they're already spending." Jacques West
Put the list budget into ads on your own brand that collect full credit applications, then follow up fast. See how Subprime Kings works and exclusive vs shared leads.
Quick answers
Why are subprime auto leads so cheap?
Low-priced subprime leads are usually old or shared. The same buyer has been sold to many dealers and contacted many times, so the seller is getting the last bit of value from the list.
Do cheap leads ever work?
Some buyers on old lists are still in the market, so a few deals happen. The cost is the time your team spends reaching them and the effect on morale and lender relationships.