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Is anyone successfully using Credit Acceptance Corp?
I'm trying to get some dealer input about CAC instead of just input from CAC. They want $10k and tell me that it's a great program with the right inventory, but according to their public financials the average dealer only does 3 CAC deals per mo. I have a small lot located in Louisiana and it's primarily just a Special Finance Store. We currently primarily do RTO/LTO, but looking at CAC to make some front end profit instead of going in the hole on every one and depending on the revenue stream. I've used DSC's RTO/LTO line and it was awful, I've used Finance Express and we never completed a deal with them. I used a company called Fairway Lending out of Duluth, GA until they went bust, and they were great as long as the inventory fit the program. When I find a good program, I buy inventory that best fits their program. Any input or any other finance company suggestions would be great.
Replies to This Discussion
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Permalink Reply by Tony Richards on -
Greetings all. I am currently a CAC dealer, working on my 11th pool after 5 years in the business. I am sold on the CAC program, but I also don't put all of my eggs in one basket. Every customer that comes onto my lot is put into the caps system, which is extremely easy to work. Then, if I can't make it happen here, I'll dealer track the customer, and find alternative financing. I've been getting my backend money for a little over a year now, and my check for last month was a few dollars under $50k. Though the $5-9k units work best, I've financed units as high as $14k acv and made good money up front. As far as funding is concerned, if I complete a deal and am able to get the deal to the post office by 7:30 pm, I'm usually funded the very next day, (I keep 2 prepaid express mail labels printed at all times), though everything I'm writing here comes from years of experience. I'm sold on the program, but I understand that it's not for everyone. If I can be of assistance to anyone, please don't hesitate to contact me here
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Permalink Reply by Frank on
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How many Cac deals do you do in a month? What inventory works best ?That do you do to market the CAC program? How does Dealer Track help you with sub prime customers?
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Permalink Reply by Anthony Williams on
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I would also like to hear what other dealers are seeing as far as monthly checks on their receivables, and approximately how long it took to start seeing portfolio monthly (not including the express check) money..
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Permalink Reply by John on -
We use CAC and West Lake, for the customer that need that special attention, and I'm sure there are others lenders out there. We do about 3 to 4 cac deals a month and avg approx 2200 a deal with them. Inventory stops us from doing more deals with them as we do not buy cars for their program, so the only way we get invrentory for there program is to trade it and have it pass our shop. Good Luck.
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Permalink Reply by Ben Misra (secondarypro) on -
Its always funny to me when the only bad comments come from either dealers that don't understand a program or competitors of CAC,
Here are the main reasons NOT to use Credit Acceptance.
1) You are not in control of your inventory.
2) You are paid only on the front end profit
3) You get "kickbacks" from other finance companies
4) You have no understanding of Special Finance
5) You wont learn
6) You think 10K is a lot of money
Buy hey... that just my 30 years experience talking.
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Permalink Reply by Jeff Carress on
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Ben, Well said Uncle Jeff
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Permalink Reply by Frank on
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Hi,
What are your reasons to use CAC? I am a Dealer-Partner and I am having a hard time figuring out what inventory works best . Any suggestions or comments? fkblair@aol.com
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Permalink Reply by Karl Jensvold on -
Frank
To solve the inventory problem with CAC we Blackbook everything before we go to any auction and make a simple spreadsheet that shows us rough and average values. By doing this we are able to know exactly when to stop bidding for inventory and are able to find diamonds that are killer CAC deals. 01-03 Dodge Durangos, 02-05 Chrysler T&Cs will both have strong Blackbook and weak NADA or MMR values. This has made buying so simple I send my clean up kid to the auction with his spreadsheet and he has had great success bringing home CAC inventory. It takes all the emotions out of buying at the auction.
The other step to CAC inventory is using the Caps inventory worksheet to tell you where your inventory is deficient. This helps us fill in areas that need more inventory. It is a great tool provided by CAC.
With this program we have doubled our CAC volume in the past year because 90% of the inventory shows up as profitable deals with our CAC customers and the salespeople have a ton of options to show the customers.
The downfall is we spend about 2 hours working on presale auction information for a small auction and 6 hours when planning a Manheim trip. When we get to the auction we just preview the condition of the vehicles and we have the numbers already set.
We are loving CAC and the backend checks start this December which is about 18 months after our first pool. It took 20 months to close our first pool but we are on track for 3 pools per year. Funding is fast and the company support is great.
Karl
Winners Circle Auto Center
Lincoln, NE
GO HUSKERS!!
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Permalink Reply by Frank on
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I don't know if you got my reply,thank you for your help,any other vehicles you can recomend?
Frank Blair
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Permalink Reply by Ben Misra (secondarypro) on
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Frank,
I guess what I am hearing is that you do not have a good CAC rep working with you.
The CAC rep is trained to guide you through the program and this is how they make their money...by improving your store.
Maybe its time for a new rep.
Ben
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Permalink Reply by Frank on
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My CAC rep. is great ,but I also want to get the views of other dealer-partners on how they handle differant problems. I have had a big boost in my business right now as a result of the CAC program as it allows me to serve customers who I was unable to in the past. A day does not go by that I am not amazed with the types of customers I have gotten approved.Any other CAC Dealer-Partners out there who share my view?
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