There’s an old adage in the buy here-pay here business: “I’m going to have to repossess 20-60% of the vehicles I sell; I just don’t know which ones or the timing of all those repossessions.”
While that is true, there are a several ways to mitigate losses. One of the key ways to increase sales and to reduce losses is with the utilization of a predictive underwriting system.
Auto Loan Technologies, LLC dba AutoZoom, has successfully launched a completely upgraded and now state-of-the-art predictive scoring system for buy here-pay here dealers. Based on more than 1 million buy here-pay here transactions, this newly optimized system gives dealers a powerful tool to consistently underwrite finance contracts and to help determine what customers and deal structures will perform best.
Scott Carlson, AutoZoom’s Managing Member, said he has spent the better part of the last decade working to make AutoZoom the best system for buy here-pay here underwriting in the industry. This newest version, AutoZoom FLX, gives dealers a highly intuitive interface which may also integrate with the dealer’s DMS. This requires less data entry for users. More importantly, AutoZoom FLX now provides a wealth of dealer-specific statistical information through the use of graphs, charts, reports, exports, and static-pool analysis for upper-management.
“We have been working diligently over the past 18 months to make this system the most user-friendly and powerful tool in the dealer’s underwriting arsenal,” Carlson said. “Whether a dealer has one or multiple locations, the web-based AutoZoom FLX system will instantly deliver practical benchmarks to underwriters with each processed customer application.”
Key is that AutoZoom FLX enables managers to easily spot trends in deal structure successes and/or failures and sales person strengths and deficiencies. AutoZoom FLX doesn’t improve a buy here-pay here customer’s ability to pay or personal situation, but what it does is give the dealership’s underwriting team the ability to consistently match the right credit risk customer with the right deal-structure, thus improving sales and portfolio performance.
“Everything the managers need to determine to whom to give a car loan and how to structure each deal is right there in front of them,” Carlson said. “The manager always has the final say on every deal, but now he also has an inexpensive tool to help guide his decisions and a way to track the impact of all underwriting.”
Carlson said AutoZoom now has underwriting and portfolio analysis based on more than 1
million transactions from most all of the 50 states and Canada.
“Once dealers see just how useful and powerful the new AutoZoom FLX is, any past debate over ‘if’ to add it to their dealerships quickly turns to ‘how and how quickly,’” Carlson said.
For more information on the all-new AutoZoom FLX predictive underwriting system, please visit the company web site at www.autozoom.com or call (888) 493.6891. Carlson and team will be on hand at the 12th Annual National Alliance of Buy Here-Pay Here Dealers Conference, May 11-13, at the Venetian Hotel in Las Vegas.
AutoZoom is a web-based predictive underwriting system designed to assist dealers with the underwriting challenges of the buy-here pay-here industry. AutoZoom has created a number of Scoring Models specifically for the sub-standard credit (buy-here pay-here) industry. AutoZoom includes management tools that utilize dashboards, charting, and exporting features to present data related to underwriting, sales, repossessions and associated cash-on-cash gains and/or losses in a very user-friendly interface.