BLOG FOR SPECIAL FINANCE CAR DEALERS
Expanding special finance auto lender
Exeter® Finance Corp. , a special finance auto lender located in Irvine Texas is adding new franchise dealers in Colorado, Delaware, Georgia, Illinois, Massachusetts, Missouri, New Hampshire, New Jersey, Ohio, Pennsylvania, and Texas. (Read More…)
Comments (0)Subprime Auto Sales 3.0.1
Starting March 8, 2010 we will begin testing a new concept in pre-approved subprime auto sales leads in the Metro Detroit area. Basically, the way the program works is that when consumers apply on our websites we will submit their application directly to lenders for an approval. (Read More…)
Comments (0)A New Era in Subprime Auto Lending
A few days ago Americredit announced securitization of $600 million dollars. Last quarter Consumer Portfolio Services announced a securitization as well. In addition, we have seen an increase in lending offered by smaller regional firms across the country. (Read More…)
Comments (0)Special Finance Lender Mix
Having the right lender mix is a critical factor to your car dealership’s long term success in sub prime. Your lender mix is not a static entity. You should always be on the lookout for new funding sources. When a suprime auto lender rep stops by or calls, listen to what they have to say. (Read More…)
Comments (0)Calculating Income and Pay Stub Debt
Misrepresenting the customer’s income and overlooking non-standard pay stub debt may cause your car deal to be held up in funding. Often subprime lenders will charge additional fees to fund these deals, other times they will reject the car deal and return the contract unfunded to the dealership.
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Long Term Success in Subprime Car Sales
Over the last year and a half we have heard allot of car dealers say that their sub prime sales are declining. Dealers are halting special finance advertising programs because they can no longer get tough deals bought, or they don’t have vehicles available to fit lender calls. In addition, big finance companies like Triad and Household have gotten out of the auto finance business while at the same time captive finance companies have tightened their belts. (Read More…)
Comments (0)Minimzing the Risks in Subprime Auto Sales
Perhaps you’ve heard of, or witnessed yourself, stories about dealers getting sued by a sub prime auto lender; or a lender running out of money when a dealer had scores of contracts waiting to fund. On a smaller scale you may have heard of a lender not honoring an approval because employment and income information did not verify at time of funding, or charging the dealer back on an old deal because it was repossessed and the equipment on the vehicle was not as stated when the deal was originally approved.
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Car Sales - Switching from Prime to Sub Prime
If your sales staff could pre-qualify everyone with 100% accuracy you would never have to switch a customer from a prime sales process to a sub prime sales process. Even with years of experience it is unlikely that this will occur. Typically, when the dealership sales staff is unable to determine the credit worthiness of the buyer they will follow the traditional sales process. That being said, there will be car buyers that we cannot get bought, under the current conditions, on their automobile of choice. (Read More…)
Comments (0)LotPro Software – Not just for special finance anymore
Since the subprime mortgage meltdown, more and more prime lenders, captive finance companies, and credit unions are following the rules established long ago by subprime auto lenders. Special finance lenders have always had strict advance guidelines based on the credit tier of the applicant whereas prime lenders would often over advance for an applicant with a good credit rating. (Read More…)
Comments (1)AmeriCredit Posts 25 Million Plus Second Quarter Loss
Today the Fort Worth Texas-based lender reported a net loss for the quarter ending December 31 of 2008 while stating it will now concentrate on collections from its loan portfolio. (Read More…)
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