How Near Prime Customers Improve Profitability

How Near-Prime Customers Drive Profitability

Near-prime customers can improve profitability by:

✅ Increasing finance penetration
✅ Reducing customer drop-off
✅ Improving stock turn
✅ Increasing PCP opportunities
✅ Greater PCP renewal opportunities in 2-4 years
✅ Helping dealerships reach a wider customer base

Missing The Near-Prime Opportunity?

A prime decline doesn't have to mean a lost customer. Many near-prime buyers are financially stable and creditworthy but fall outside rigid lending criteria.

Marsh Finance is one of only two UK lenders offering non-prime PCP, giving dealerships an alternative to restrictive HP agreements. By offering near-prime PCP, you can reduce monthly payments, convert more deals, and create valuable customer retention opportunities at the end of the agreement.

What Is A Near-Prime Customer?

Near-prime customers often just miss out on prime lending criteria, but are still reliable borrowers who are financially stable enough to make repayments.

Near-prime customers are often reliable and stable, but struggle to match with prime lenders. As a car dealership, it can be difficult to get these customers traditional approval, but partnering with a near-to-non-prime car finance specialist can open doors and help you access a huge growth opportunity.

Looking to tap into this market? Marsh Finance can help.

Supporting Near-prime Customers

Smart Underwriting Without the Showroom Friction

Additional affordability checks are sometimes needed on near-prime applications, creating delays that can put a deal at risk.

Instead of treating these checks as a barrier, we use solutions like Open Banking to verify affordability quickly and accurately. Our approach is simple: we actively look for ways to approve customers where it's responsible to do so, helping you maintain momentum and complete more deals.

Here’s how Open Banking can boost sales for dealers and brokers.

Suitable Financial Products

PCP is a popular option for near-prime buyers, but offering HP as well is a must. PCP brings with it greater flexibility and lower monthly payments, which, for near-prime customers, protects their current financial status whilst offering greater flexibility at the end of the deal. In saying this, if a customer prefers long-term ownership, having HP as another option is essential to preventing a customer from dropping off. The ability to offer both PCP and HP gives dealerships greater flexibility to match products to customer needs rather than forcing customers into a single solution.

📚 HP Vs PCP For Dealerships: Which Should You Offer?

How To Measure The Impact Of Near-Prime Finance

Dealerships introducing near-prime finance solutions should monitor the following to assess its impact:

• Finance penetration rate
• Approval rate
• Conversion rate
• PCP mix
• Customer retention
• Repeat purchase rate

Where Marsh Finance Fits In

Marsh Finance offers both HP and PCP options, with flexible lending and tailored financial solutions for each customer. If you’re looking to support customers sitting outside of prime criteria with PCP products, Marsh Finance are one of only two options in the UK. With over 50 years of experience servicing customers of varying credit scores, Marsh Finance is well-equipped to support customers no matter their circumstances.

Grow Your Profitability With A Specialist Near-Prime Lender

Many near-prime customers are declined by traditional lenders, but that doesn’t take away their need for a reliable car and realistic monthly payments. Marsh Finance specialises in supporting these customers, with decisions based on the full situation, not just a credit score.

Speak to Marsh Finance about our near-prime opportunities and how we can help your dealership grow.

Further Reading

Visit our near-prime hub, or browse the various insight pieces below to broaden your near-prime car finance awareness.

PCP For Near-Prime Customers

Near-prime Car Finance For Dealerships