Let’s discuss some discount lenders specifically, and maybe I can help you build your bottom line by building your lender base. People’s Credit, based out of Portland, Ore. Probably the best “bottom-feeder” there is out there outside of a portfolio lender. They are non-credit based. You simply answer a few questions and provide the proof to those answers. Their max amount to finance is $7,000, so have the inventory prepared for them and expect a 10 to 15 percent discount.
Another for those of us in California or Arizona is A/L Financial, an excellent discount lender. Watch your portfolio and your first payment defaults, and they will be your best friend for low income low tier paper.
There are many others including portfolio lenders, Wells Fargo CAR program, Credit Acceptance (God Bless any dealer who is successful) and Western Funding or Drive Financial who will buy the car; not the customer. These lenders will be essential if you want to truly be competitive in the market place that is constantly growing with more and more dealers getting in the business.
We all need a few good first time buyer programs. And don’t hang your hat on the Credit Unions for too long. With 62 percent of Americans classified as “special finance” that can be looked at as about 50 percent or more who aren’t going to make their payments regularly on that car note either, so the credit unions won’t sustain that program for long. Look at some diehards like United Auto Credit Corp. or CPS. These programs will have the large fees or the small advances but it gives you a consistent way to go with this paper.
We all make our money on the B to C tier Household, Wells Fargo, Transouth paper, but we can really clean up and make a great paycheck and a great name for ourselves in the community if we branch out and help everyone who needs a car. Hope to see you at the top, but in only a way I can say it. I would rather look down on you, anyway if you don’t care to join me up here.
Vol 2, Issue 4