Cryptocurrency is the future of finance
- Are you looking for an innovative way to attract new customers?
- Has your dealership ever turned a customer away because you could not make the deal happen due to financing issues?
- Do you want a competitive edge over banks and credit unions so you can capture more financing?
If you answered “Yes” to these questions, you owe it to yourself to learn more about Cion Digital’s innovative cryptocurrency payments and marketplace lending platform.
Designed to integrate with existing auto dealership sales and F&I processes, Cion Digital’s cryptocurrency platform offers car shoppers a welcome alternative to traditional financing options—especially in this high interest rate environment.
Join Cion Digital at the Bellagio and The Mirage casinos!
- Attend the DrivingSales Executive Summit Innovation Cup Event at the Bellagio, October 9-10.
- Visit Cion Digital at Booth #201 during the Digital Dealer Conference in Las Vegas,NV, October 11-13.
Make your appointment now!
Not convinced? Learn how your dealership can benefit from cryptocurrency by reading this article from our Co-Founder and President, Fred Brothers:
6 Benefits of Crypto-Secured Loans
As vehicle prices remain near all-time highs and interest rates continue to rise, vehicle affordability is becoming an issue for many Americans. Although nearly 63 percent of Americans have a credit score of 699 or higher, 37.2 percent of Americans have fair or bad credit, according to FICO.
For auto dealers, this means four out of ten car shoppers are having to pay higher interest rates to secure an auto loan. With the average car payment for new vehicles topping $700 per month and used vehicles over $500 per month, many car buyers are being driven to seek alternatives to traditional financing options.
Fortunately, there is another option for auto loans that is quickly gaining ground:crypto-collateralized loans. This option is especially popular amongMillennials and Generation Z, who tend to be cash-strapped with thin credit profiles, but who are enthusiastic cryptocurrency investors.
With a crypto-secured loan, the customer does not have to sell their cryptocurrency, which is a big plus for long-time “HODLers,” as we refer to them in the crypto industry. Using a marketplace-lending platform similar to a traditional lending platform, the dealership connects the car buyer with a lender that accepts cryptocurrency as collateral for a loan. The loan can then be used for a downpayment or to finance the entire vehicle.
For auto dealers, there are multiple benefits to offering crypto-secured loans:
- Increase market share by attracting new customers who are specifically looking for ways to buy or finance a vehicle using crypto. Many cryptocurrency investors are rabid enthusiasts, and if they think it’s cool to pay for, or finance a vehicle with crypto, they will actively search for dealerships that can accommodate them.
- Lower interest rates for consumers. Collateralized loans typically offer interest rates lower than unsecured loans.Additionally, many lenders in the cryptocurrency space offer extremely competitive interest rates. As interest rates continue to rise, car shoppers will be thrilled to learn they can obtain a loan with an interest rate several points lower than a traditional loan.
- Close more deals by helping customers obtain financing, who would otherwise not qualify for a traditional auto loan.Some car shoppers with poor credit scores just can’t be helped. But if they happen to own crypto, there may be a way to make these deals happen.
- Earn extra fees. Auto dealers can often earn an extra percentage point on crypto-secured loans versus traditional loans, while still lowering interest rates for customers.
- Compete with banks and credit unions to capture more financing. While 61 percent of new car auto loans involve captive financing, that still leaves nearly 40 percent of the market who are cash buyers or who seek financing through banks and credit unions, according to Experian. In the pre-owned market, only nine percent of deals are financed through dealerships.
The terms your dealership can offer with a crypto-secured loan will be as competitive, if not better, than traditional loan offers by banks and credit unions. And because crypto-secured loans are still a novelty, there may be a substantial percentage of savvy loan shoppers who would opt to finance through your dealership if they can use crypto, rather than shop around for a traditional loan.
- Lower loss rates, as collateralized loans experience less risk than traditional loans. Cox Automotive predicts that the auto loan default rate in 2022 will reach 2.3 percent, a 16 percent increase compared to 2021, thanks to 42-year high inflation and growing concerns about recession.
Cryptocurrency owners frequently search for ways to make the most out of their investments. The ability to use crypto to finance a vehicle and save money, without having to sell the crypto, is a winning proposition. For auto dealers, the benefits of offering crypto-secured loans are clear.
See how our crypto platform works!
Make your appointment to meet with us Digital Dealer or Driving Sales Executive Summit now!