We often hear indirect lending insight from other lenders and various vendors regarding best practices, but what about the dealers? Their business acumen and experience working with lenders trying to earn their deals are reasons enough to strongly value what they have to say.
In this week’s blog post, we will revisit our most recent webinar earlier this month where multiple dealers shared their thoughts regarding a number of pressing topics on the minds of everyone competing in the indirect lending market. If you missed the webinar, don’t worry. You can still request a complimentary link to the recording by clicking the button below. Here’s what they had to say about how many lenders they currently use, how many they plan to sign this year and what new lenders can do to win their business:
Dealer 1: Right now we have an availability of 24 lenders, which is a lot. We use about 15-18 of them in a month. A new lender coming through our door needs to find a niche that can help us deliver more cars. So if the lender specializes in older model, high-mileage cars, then that might be something we need. Everyone can buy the straight-up, good paper, but it’s about finding someone who can help our need to deliver more cars.
Dealer 2: We’re similar [to Dealer 1]. We have 31 non-captive lenders signed up in the group. We plan to sign as few as possible. I’ve signed two new lenders so far this year, and both have been non-prime. To get their foot in the door with us, it’s very similar to what [Dealer 1] had to say. They would need to demonstrate some ability to improve on what our current portfolio provides whether it’s those older units, additional advance, additional reserve or back-end. We are part of a larger group. I have 20 franchises here within our group, so we have some lenders that have some management fees. If a new lender approaching us was in the same ballgame, we’d consider signing them as well.
Dealer 3: Our organization runs about 71 stores in the Maryland area. In terms of total lenders, we probably have about 30-35. What’s important in a new lender is understanding profitability. Anyone can lend, and how that helps a dealership become more profitable is a pretty big event because some lenders lend but limit profitability. Some lenders lend with an open book for the dealer to become profitable depending on loan-to-value (LTV) ratios. All of those things factor into the value of a new lending institution.
Sharing details about their lenders and what they look for in new ones was just the first topic discussed during the webinar, which also featured numerous questions from attendees. CRIF Select boasts the industry’s best track record for bringing dealers and lenders together for mutually profitable indirect lending programs. This is a webinar you can’t afford to miss. Other topics discussed include what matters most from lending partners, visits, communication, spreading the deals and promotions.
To request a link to this webinar recording, please click the button below.
Photo Credit: Daniel Oines