Rising interest rates are reshaping the landscape of auto financing—and dealerships are on the front lines of that change. As borrowing costs increase, more consumers are hesitating to purchase vehicles, stretching terms longer, or struggling to qualify for traditional financing. For dealerships, that means one thing: it’s time to get strategic.

In this blog, we’ll explore how dealers can continue closing high-quality deals despite elevated auto loan rates. From financing structure tips to leveraging tools like AVA™ MatchBook, here’s how to turn today’s interest rate challenges into tomorrow’s sales opportunities.

The Impact of High Auto Loan Rates on Sales

With auto loan interest rates climbing to their highest levels in over a decade, affordability has become a top concern for buyers. Monthly payments are higher, approval rates are tighter, and F&I managers are navigating more complex deal structures.

This environment puts pressure on dealerships to innovate, adapt, and assist buyers in overcoming financial roadblocks. The dealers who succeed will be those who approach financing creatively and offer real solutions—not just vehicles.

1. Focus on Payment-Based Selling

When interest rates rise, monthly payments become even more central to the deal. Instead of focusing solely on sticker price or MSRP, top-performing finance managers are shifting their pitch to emphasize affordable monthly payments, often using the term “budget-friendly financing” to keep customers focused on what they can manage month to month.

To make this easier:

• Offer flexible term lengths
• Present multiple payment options upfront
• Use pre-qualified data to show what’s realistically attainable

This approach helps buyers feel in control and keeps the deal moving forward.

2. Get Creative with Vehicle Matching Using AVA™ MatchBook

When rates are high, finding a vehicle that fits both the buyer’s preferences and approval conditions becomes much harder—but it’s not impossible.

That’s where AVA™ MatchBook steps in.

AVA™ MatchBook intelligently matches approved loan terms with vehicles already on your lot, factoring in customer credit conditions and lender guidelines. With just a few clicks, your team can:

• Automatically filter eligible inventory
• Prevent time lost chasing deals that won’t fund
• Present better vehicle options to the customer, faster

This is especially useful in non-prime or negative equity situations, where structure complexity often causes deals to stall. With AVA™ MatchBook, even your prime finance team can successfully handle tricky approvals and drive higher close rates.

3. Emphasize Pre-Qualification Tools

High rates make approval anxiety more real than ever for customers. Use soft-credit pre-qualification tools to show buyers what they can afford before they even test drive. This eliminates surprises, builds trust, and improves closing efficiency.

Even better, when integrated with AVA™, these tools allow you to funnel more ready-to-buy leads into your F&I funnel—helping your team stay focused on high-intent customers.

4. Educate Buyers on Total Cost of Ownership

Help customers look beyond the interest rate. Highlight long-term savings through:

• Warranty packages
• Fuel-efficient models
• Lower insurance costs

When buyers understand the total value of a vehicle—not just the APR—they’re more likely to move forward with a purchase.

Your sales team should be trained to reframe the conversation around value vs. cost, especially for higher-interest scenarios.

5. Partner with Lenders Offering Flexibility

In a volatile market, lender relationships matter more than ever. Align your dealership with financing institutions that:

• Offer special rate programs
• Provide flexibility for subprime buyers
• Support extended terms or balloon payments

AVA™ tools integrate seamlessly with many major lenders, making it easy to test multiple approval paths without manual rework.

Final Thoughts: Dealerships Can Thrive in Any Rate Environment

High interest rates are challenging—but they’re also an opportunity to rise above competitors who are still using old-school financing tactics. With the right mix of technology, training, and strategy, your dealership can turn rate resistance into increased loyalty and improved closing ratios.

✅ Use tools like AVA™ MatchBook to connect the right approvals to the right vehicles.
✅ Keep buyers focused on affordability, not fear.
✅ Structure smarter deals and win trust.

It’s not about waiting for rates to come down. It’s about adapting to the current market and offering real value—today.