Just start working for independent dealer in western MA. At this time only has a few local credit unions in place. Where do I start this process to offer financing to all customers? I used to work for a franchise dealer and used the dealertrack platform but being an independent with an inventory of about 50 vehicles and growing what banks are my best options for prime and subprime any advise would be great help!!!!!
Thanks Victor I will give them a call in the morning. Recourse?? please advise
Hi My name is Gustavo Montero and im starting the financing department for a independent dealer as well! If you are familiar with Dealertrack you wont have any issues using other platforms as DealerCenter or RouteOne. Contact Ally Auto Finance they are great financing company for any dealer needs and will guide you through the whole process! I wish i could give you a phone number but the only guy i know its a TX region manager!
Are you going to use Ally? Are they on Dealertrack? I contacted Chase Custom and they came out but wanted vehicles over 10k to finance. Most of our inventory is 5-8k what banks would be a player for prime customer please advise and thanks again
Your welcome Sandra! Yes I'm in the enrollment process with Ally, They use DealerCenter or Routeone, and provide you with a huge list of available lenders. Ally is a strong company it used to be GMAC!
Thanks Gustavo What are the fees if any to get set up with Ally? I had Routeone when I worked in the Ford store so i am familiar and used ADP but we are an independent dealer so what if any requirements do they have please advise and thanks again for you help this is a project for me and the easier it is the beter LOL
Sandra- Are you looking for Deep Subprime as well, which covers 1/3 of the adults in the US. If so please give us a call at www.FinCoManagement.com 781-639-6000, speak to Scott or Kyle and they can get you set up quickly.
We fund up to 90% of the amount finaced over time for people who have terrible credit, BKs, cash incomes, no socials etc. etc. If you can afford to take your profits over time, we can earn you more profits than any other indirect lender.
I would recommend Chase Custom Finance as well.
Toby Reiley President
Thanks Toby I think the owner would like the cash up front but I will discuss with him. Also I had the Rep from Chase Custom out to our facility and they want loans around 10k and really don't want to write the small loans for 5-7k any ideas on another bank? Any feedback would be great
The profits can run 40% higher for taking them over time in an outsourced BHPH operation, and 25 to 30% higher if you do your own BHPH. Plus its tax deffered. You clear $750 to $1000 up front (from the down payment and our advance) and take the balance over time. We finance the Warranty, GPS, VSI and GAP as well. Recourse against the portfolio only.
I have drank the CAC CoolAid and am now receiving my monthly portfolio checks so I love the CAC program and you can offer financing for everyone. This is the perfect program to get everyone in the door and give them an approval sheet, then once you get them committed with down payment you can structure the deal with the best lender. We have a balance of 50% CAC deals and the rest are Credit unions, Chase Custom, and just started with United and CPS. The secret for us is getting everyone approved and in our system then place them where it is best for the customer and dealership.
The program is easy to market and the customers will love you for helping them. With a 50 vehicle inventory you should be able to retail 35-50 sales each month. We feed our local Credit Unions and Chase Custom with our prime and they show us the love with the not so prime customers. I know some dealers are using Westlake but for some reason it has not caught on with our store, maybe if they will start working with Frazer on inventory feeds ( Hint for Westlake) into their Dealer Center program it might work for us also.
Sorry I tend to ramble on but we have grown our independent store this way and still have a lot of work to do.
Winners Circle Auto Center
Karl. Interesting post. FYI, Westlake is not yet in MA.
How does taking a "weak" application with cash income, no social, no tradidtional residence affect your CAC advance? Before I became a lender I found it to be very expensive. How is it now?
We have upgraded our inventory and have found an upgraded credit customer. We still have your "weak" applications and if they are willing to go through our "Credit School" we will put them in a lower price unit to establish a positive credit but if they still insist on getting the Escalade on the front row we qualify them with down payment or refer them to the BHPH down the street from us. The biggest thing that has affected our CAC advance has been the comeback of the sub prime lenders taking the top of the CAC business. My goal for my store is a 50/50 balance with CAC and 3 pools a year. If I can maintain those numbers a few "weak" deals won't have an affect. If it takes 2 years to do a pool that can make a difference.
We explain to our customers about how credit works and that has made a huge difference with the success of our program. We believe if we can help the customer get back on track we have a customer for life. Most of them are younger and appreciate the guidance. Our last 6 months 46% of our business has been repeat and referral so we think it is working. I have a great sales staff and they are proud of that number.