What Is a Fair Car Finance Lead Replacement Policy?

A fair car finance lead replacement policy is a written commitment that the vendor will replace, or credit, any lead it cannot show was contactable or accurate, within a stated claim window, with the criteria set out before you buy. It covers invalid numbers and details that are plainly wrong. It does not cover a lead that was real but simply didn't convert, and no honest vendor will promise that it does.

Every lead vendor will occasionally deliver a bad lead, so the existence of a replacement policy is not what separates good vendors from poor ones. What separates them is whether the terms are specific, written and applied consistently. This post sets out what a fair policy contains, what it should exclude, and how to test a vendor's policy before you commit budget.

What is a lead replacement policy?

A lead replacement policy is the vendor's stated rule for what happens when a delivered lead turns out to be unusable: which problems qualify, how long you have to report them, how you report them, and whether the remedy is a replacement lead or a credit. It is a commercial term, and like any commercial term it should exist in writing before the first order, not be negotiated after a dispute.

The policy matters because buying leads is a pay-per-lead arrangement: you settle for a batch in advance and you carry the cost of every lead that cannot be worked. A clear policy moves part of that risk back to the vendor for the failures that are genuinely the vendor's responsibility, such as a disconnected number, and leaves with you the risks that belong to the broker, such as how quickly and how persistently you call.

What should a fair replacement policy cover?

A fair policy covers the failures that can be objectively checked: a phone number that is disconnected or invalid, a lead that cannot be contacted despite reasonable attempts, and a lead whose stated details are completely different from reality, such as a prospect who says they never made an enquiry or who is not seeking vehicle finance at all. These are problems with the lead itself, not with how the conversation went.

In practice, a fair policy has five parts:

1. Qualifying reasons. A short list of named problems, such as invalid number, uncontactable after reasonable attempts, or details materially different from the enquiry. 2. A claim window. A stated period after delivery in which you must report the problem, so that the claim can be checked against what was true at the time. 3. A reporting method. One clear way to submit a claim, and what evidence is expected, such as the dates and times of your call attempts. 4. The remedy. Whether you receive a replacement lead or a credit, and how quickly. 5. The exclusions. What is not covered, written plainly rather than discovered at the point of dispute.

If a vendor can't show you all five, the policy is a verbal assurance rather than a term you can rely on.

What should a replacement policy not cover?

A replacement policy should not cover a lead that was real and reachable but did not result in a settled deal. Whether a prospect is approved, chooses another broker, changes their mind or can't meet a lender's servicing criteria is part of the ordinary risk of selling finance, and no vendor can underwrite it. A policy that appears to promise otherwise is either misleading or will be impossible to claim against.

This line is also what keeps the policy fair to the vendor. If brokers could claim a replacement whenever a lead didn't convert, the cost of those claims would have to be built into the price of every lead. Narrow, checkable criteria keep the arrangement honest for both sides. They also depend on you calling promptly and persistently, which is why speed to lead and a disciplined follow-up routine come first and the replacement policy comes second.

Why does the replacement policy change what a lead really costs?

The replacement policy changes the effective cost of a lead because you pay for every lead delivered, but only workable leads can become deals. A policy that replaces uncontactable leads brings the number of workable leads back up to the number you bought, and a vendor with no policy leaves that gap as your cost.

Illustrative example: the figures below are hypothetical.

Say a broker buys 40 leads in a month and 4 of them turn out to have numbers that can't be reached. With no replacement, the broker has paid for 40 and can work 36, so the cost of each workable lead is the price of one lead multiplied by 40 divided by 36, which is about 11% higher than the headline price. With replacement of the 4 unreachable leads, the broker works 40 leads for the price of 40, and the effective cost equals the headline price.

The same logic applies at any volume: the more of a batch that can't be worked, the further the real cost per workable lead moves from the quoted price. This is why replacement terms belong in the comparison alongside price, and why working out whether a lead source is actually profitable should use the cost of a workable lead, not the cost of a delivered one.

How do you test a vendor's replacement policy before you buy?

You test a policy by asking the vendor to describe, in specific terms, what happens in three scenarios: a number that doesn't connect, a prospect who says they never enquired, and a lead that was reachable but didn't convert. A vendor with a real policy can answer all three without hesitation and can show you where the answer is written.

Useful questions to ask before ordering:

• Is the replacement policy in writing, and can I see it before I buy?
• Which specific problems qualify for replacement or credit?
• How long after delivery do I have to report a problem?
• What evidence do you need from me?
• Is the remedy a replacement lead or a credit, and how quickly is it applied?
• What do you not replace?

Be cautious of answers that depend entirely on the vendor's discretion, such as "we'll look after you", with nothing written down. Discretion isn't inherently bad, but a policy that exists only as goodwill can't be compared with another vendor's terms or relied on when a batch goes wrong. The wider list of questions to put to a supplier is in 9 questions to ask before choosing a car finance lead provider.

Does verification reduce the need for replacements?

Verification reduces the number of leads that will need replacing, but it does not remove the need for a policy. SMS verification confirms that a phone number was live and able to receive a text when the lead was captured, which screens out fake and mistyped numbers before delivery. It can't guarantee that the person will answer when you call, and it says nothing about their intent.

That is why a vendor's checks and its replacement terms work as a pair. Checks before delivery lower the rate of failures; replacement terms cover the failures that still get through. What SMS verification of a lead actually proves explains exactly what the check does and where it stops, and how car finance leads are qualified before they reach you covers the ad, form and verification stages that sit upstream.

Replacement also interacts with exclusivity. When a lead is exclusive, it is delivered to one broker only, so a failed call attempt is not a sign that another broker reached the prospect first. The difference between the two models is covered in exclusive vs shared finance leads.

How does Astra handle replacement?

Astra Finance Leads is an Australian pay-per-lead provider of exclusive, SMS-verified car finance leads. Every lead is qualified through a roughly 25-question form with conditional logic, verified by SMS and delivered to one broker only, and uncontactable leads are replaced free of charge. Leads whose stated details are completely different from reality are also replaced. Any other concern about a lead is looked at individually rather than dismissed by a blanket rule.

Pricing depends on lead type and volume, and replacement terms apply to the leads in your order in the same way whichever type you buy. Whatever vendor you choose, the test is the same: the terms should be specific enough that you know, before you order, what you can claim and how.

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A fair replacement policy is written, specific and limited to what can be checked: unreachable numbers and details that are plainly wrong, not deals that didn't close.