For decades, light and medium trucks have dominated the US auto industry’s sales charts, and with the books on 2022 now closed, the Ford F-series, the Chevy Silverado, and the Ram 1500/2500/3500 occupy the first, second, and third spots on the top-ten list, with combined sales of almost 1,636,000 units.
At Lendbuzz, we’re constantly taking note of trends that can mean more opportunity for our partners and customers. One trend we’re seeing in areas like the Southwest and the Southeast: higher demand for trucks from immigrants with no credit history, SSN, or ITIN. As inventory levels begin to normalize and you have more choice in what you stock—and who you’re stocking for—there’s a case that can be made for your dealership using Lendbuzz to connect the dots between shoppers and the trucks they’re looking to buy.
Immigrants have long been recognized as a positive force in the US economy, contributing jobs, revenue, and opportunities at an outsized rate compared to the overall number of immigrants in the country (over 20% of all business owners are immigrants though they only make up 13.6% of the population.)* A recent survey notes that immigrants are more likely to be business owners than they are employees, (making up 22% of total business owners compared to being just 17% of workers.)
The opportunity immigrant truck buyers represent as a potential market is outlined in work done by the US Government during the process of passing the Infrastructure Investment and Jobs Act. Because of the investments coming out of this Act, the construction industry is set to see great growth (up to 1.5 million jobs a year for the next 10 years,) which may create even more demand for trucks. Congress has recognized the role of immigrant-owned businesses in the success of this program, dedicating hearings to the subject that highlighted not only their importance, but also the obstacles many of these businesses face.
In her statement opening a hearing titled “Harnessing the Power of Immigrant-Owned Businesses to Build Back Better”, Committee Chairwoman Nydia Velazquez noted, “When it comes to foundational areas like business mentorship and accessing capital, immigrants are at a disadvantage.” She continued, “They also struggle to access the capital needed to start and run a business. Whether due to poor credit history, limited financial literacy, or a lack of access to mainstream financial services, immigrant-owned firms have a harder time obtaining the funding needed to be successful.”
When asked during this same hearing what “...the most in-demand services by immigrants that seek help” for, Daniel Fitzgerald of the San Diego & Imperial Small Business Development Center said, “...navigating the U.S. system…either the lending and banking system, credit system…how the credit market works and how credit scoring works.” For any dealer that’s had to turn away truck buyers (who often don’t use SSNs or ITINs during their loan application processes,) the above anecdotes should sound as disappointing as they are familiar.
Thankfully, Lendbuzz can help. Since we started back in 2016, we’ve been a leader in helping to fairly fund a wide variety of car buyers—from ones who are new to the US to those with no credit history, all the way to borrowers with fair to good credit scores. In recent months, we’ve seen our percentage of truck loans increase, and thanks to a variety of factors (a handful of which are noted above,) and our experience funding these borrowers, we’re uniquely positioned to help your dealership service this audience with our proprietary, technology-driven approach to the loan process. If you’re ready to find out how our platform can open up more opportunities for your dealership and its truck buyers, please reach out today.