Why Prequalification is Transforming Digital Car Sales

In case you haven't heard, prequalification is by far the most effective CTA with lead capture rates up to 60%. But it isn't just about getting people to enter their name and phone number. Car dealerships that embrace prequalification tools and soft credit pulls are gaining a competitive edge by increasing conversion rates, improving customer satisfaction, and boosting profitability.

What is Prequalification, and Why Does It Matter in Car Sales?

Prequalification tools use soft pulls—a type of credit check that retrieves a consumer’s credit file and FICO score without impacting their credit score. Unlike traditional hard pulls, soft pulls require only the customer’s name and address, avoiding the need for sensitive information like Social Security numbers.

Customers are more likely to engage with dealerships offering soft pull credit checks because they feel safe knowing their credit score won't be affected. As a result, dealerships using this tool report higher lead conversion rates, often surpassing 60%.

Here are the most important reasons to adopt pre-qualification soft pulls in your digital retailing strategy.

1. Increase Car Sales with Early Credit Transparency

Without upfront access to a customer’s credit profile, dealerships often risk misquoting interest rates and monthly payments or matching the customer to the wrong car—leading to unhappy customers and lost deals. WebBuy’s prequalification tool solves this issue by providing accurate credit data at the beginning of the buying journey.

Real-world example:

"A couple in our showroom thought their credit score was 550, but after a quick soft pull, it turned out to be 637—allowing us to offer better terms and save the deal." - WebBuy Subaru Dealer

This transparency ensures that the digital retailing tool and dealership finance teams can offer precise loan terms upfront, avoiding costly adjustments later in the sales process.

2. Boost Customer Satisfaction and Protect Profits

Dealers using prequalification tools not only close more deals but also improve customer satisfaction. One WebBuy client reported a 10-point increase in Net Promoter Scores (NPS)—a critical indicator of customer loyalty.

Accurate credit data helps dealers avoid the need to increase monthly payments mid-deal, which often leads to lost profits or frustrated customers. This process keeps gross profit intact and reduces customer churn.

3. Save Time and Cut Costs with Prequalification

Implementing soft credit checks allows dealerships to save time and reduce operational costs. Instead of performing hard pulls on every potential customer, finance teams can conduct less expensive soft pulls early on and only run hard credit checks for customers who finalize their deals. This streamlines the financing process, resulting in faster deals and decreased costs. 

Dealerships also benefit from WebBuy’s prequalification solution by receiving real-time data aligned with what lenders use—ensuring smoother interactions between customers, dealers, and finance managers.

4. Embrace Digital Retailing Tools to Stay Competitive

In a market where 46% of car buyers are willing to switch dealers for a more seamless buying experience, adopting tools like WebBuy’s digital retailing platform is essential. Consumers demand speed and accuracy—and with prequalification technology, dealerships can deliver just that.

WebBuy integrates seamlessly with industry-leading partners, including 700Credit, JD Power, and RouteOne, and offers a complete omni-channel retail experience across all your customer touch-points. Dealers using these tools have reported higher lead conversions, smoother deals, and better customer experiences.

Conclusion: Unlock Your Dealership’s Full Potential

Dealerships that adopt prequalification technology are better positioned to thrive in today’s digital-first automotive market. Whether online or in-store, offering soft pull credit checks ensures a smooth, transparent experience that builds trust, increases lead conversions, and protects your profits.

Try WebBuy’s Prequalification Tool Risk-Free

If your dealership isn’t using soft pull prequalification, now is the time to act. WebBuy and 700Credit are offering a 60-day free trial—giving you the opportunity to experience the benefits of higher conversion rates, improved customer satisfaction, and better profits with no upfront cost.