They are often called “guaranteed credit scored leads.”  Some call them “the next generation automotive lead.”  We call them bad leads.  Trigger leads, the next big blemish on the auto finance face and the soon-to-be-blip on a law makers radar.

A consumer applies for financing.  The financing provider conducts a hard inquiry.  The inquiry “triggers” the distribution of that consumer’s data to a supply channel.  You can say it’s legal because the privacy policy says so.  Or you can call it playing with fire.  Nine times out of ten the consumer doesn’t know their data just got shot across your desk.

Ever heard the saying “you get what you pay for”? Trigger leads will keep your sales people busy.  Just make sure you supply your team with a couple bottles of Advil as they most likely will be answering questions from angry consumers wondering how you got their info, “I didn’t apply!”  Sound familiar?

I have a theory on why trigger leads exist.  The auto finance lead industry slowed to the equivalent of stock cars entering pit road after the “big one” at Talladega.  Marketing costs increased.  Low dealer demand combined with lowering consumer credit scores and lenders tightening their belts during the recession forced downward pressure on prices.  Lead providers already selling cheap leads had only one way to go: find a cheaper source.

Now I like to use food analogies so you’ll have to forgive me…. Where I was raised we were taught the only thing that can dress a pig is a good rub, hickory smoke, 220 degrees, and about 8-12 hours of love.  I don’t recall lipstick being around.  If your lead provider offers leads for under $20, you may want to read the fine print.  Original leads cost darn near that just to generate.  Verifying and filtering… now that’s another story.

Happy Selling!

- Tom

Tom Feary is General Manager for Interactive Financial Marketing Group.

Tom is IFMG's General Manager. When he's not noodling through honest spreadsheets, he's at home with his wife, two girls, and BBQ. Comment on his posts and he'll share a recipe. You can follow him on Twitter @tomfeary.