I have never been a huge supporter of Westlake but they will take some deep subprime deals and any lender that could add extra deals to your monthly total should be in your book. You just have to make sure that you have the inventory to support what the lender buys. Study the guidelines and buy your inventory accordingly.
I have CAC and it's great! you have to know what you are doing. I talk to so many people who signed up but can't seem to make it work. I know that after we were doing good with CAC other local dealers signed up but they don't know what's going on so they stop using CAC. I have over 100 accounts with them and my portfolio is performing better than expected. YEAH !!!
I am also signed up with Westlake and I have not been able to do a deal with them yet that makes sense.
I've started getting more deals done with them in the last 60 days. I think Brett nailed it, they buy deep subprime and if you've got the right inventory for it you can get a few extra deals a month. They fund quick too, so that's always a plus.
Wachovia actually will buy a lot of subprime deals, as long as their not too far off the deep end.
Not so sure about Westlake, they came in a few weeks ago and our owner had their contract reviewed. He wouldn't sign because there's a clause in their contract that basically states they can force the dealer to buy the deal back for any reason they see fit. Something like that.
We utilize a lot of local banks though to do a lot of subprime deals as well.
If your dealership is in Al, Ar, Fl, Ga, Il, In, Ks, Ky, Md, Mi, Mo, Oh, Tn, or Va call me at Automotive Credit Corp and let's discuss how to Make More Money on those deals. Jeff Carress at 800 810 2202 ext 1227 We are a deep Sub Prime lender with common sense. If you are looking for a Lender that says " We approve anybody" and then changes your dealer rating when your pools don't perform, you might wanna call someone else. But if you are looking for a lender who dosen't make you go buy inventory for their program. Who let's your F&I dept make some money. One that still uses common sense when making calls and is willing to listen when you have something to talk about (rehash). Then give me a call and I'll be happy to visit with you Thanks Jeff
I use both Westlake and Credit Acceptance. I average 22 a month CAC and 4-5 for Westlake. For my department Westlake will allow me the option to sell a new KIA , between moneys down ( usually 3-5 thousand) and rebates and we make some money. I can also use Westlake for some one who cannot prove income with nothing but a job letter. Key to Westlake is money down and knowing the program. I suggest since there is no cost to take a real good look at the program, it may be a good addition to anyones lending portfolio.