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@webhopper wrote:Do dealerships get "dinged" by the lenders for non-performing or under-performing loans that they originate?
An example of non-performing would be a repo... an example of under-performing would be, The guy pays the car off early or pays extra, so the lender doesn't get to make back the amount of profit he anticipated by lending the money.
I was just wondering because I read through Fannie Mae's buying and selling guide for mortgages, and Fannie Mae definately frowns when people default early on a Fannie Mae backed mortgage as well as a Fannie Mae Underperforming mortgage... In fact, it leads to an investigation of the originator by Fannie Mae. I guess I'm wondering if the same is true for Auto Loans?
Absolutely. A dealers portfolio with a lender goes a long way when it comes to getting better approvals. A dealer that has a better track record with a lender may get an approval that another dealer cannot because of a higher default ratio. Dealerships are also effected by the amount of calls vs. contracts.
Absolutely. A dealers portfolio with a lender goes a long way when it comes to getting better approvals. A dealer that has a better track record with a lender may get an approval that another dealer cannot because of a higher default ratio. Dealerships are also effected by the amount of calls vs. contracts.
Interesting! I hope you don't mind all of these questions... the world of consumer finance is fascinating to me.... What do you mean by the above statement in red? I've never heard this expression before.
I think by 'calls vs contracts' he means the number of applications the dealer sends to a particular finance company vs. the number of those applications that actually become signed deals. So if I send 'bank x' 200 applications this month and only three of those people decide to actually use bank x, well then bank x probably isn't going to offer that dealership the same great rates as another dealership who is getting them more signed deals. One back scratches the other...
@Anonymous wrote:I think by 'calls vs contracts' he means the number of applications the dealer sends to a particular finance company vs. the number of those applications that actually become signed deals. So if I send 'bank x' 200 applications this month and only three of those people decide to actually use bank x, well then bank x probably isn't going to offer that dealership the same great rates as another dealership who is getting them more signed deals. One back scratches the other...
Ah ok, I see. Makes sense... somehow my dealership got me a better deal with a local CU than I could have gotten on my own. I was pleased when they looked into CU financing on my last loan instead of Ford Motor Credit, which they got a faster approval for, but with less attractive terms than what the CU ended up offering. When they told me what Ford Motor Credit would do (it was a Saturday), I told them I needed to check with my local banks, especially the bank that I have my checking and savings with and see what I could get as far as better terms.. They called me the following Monday with the Credit Union offer, which was a good offer and beat what my bank could offer.
@Anonymous wrote:I think by 'calls vs contracts' he means the number of applications the dealer sends to a particular finance company vs. the number of those applications that actually become signed deals. So if I send 'bank x' 200 applications this month and only three of those people decide to actually use bank x, well then bank x probably isn't going to offer that dealership the same great rates as another dealership who is getting them more signed deals. One back scratches the other...
Well said.
Up N Coming,
Thanks for being honest with your responses. I'm sure you will help out more than a few people on here...
What does VW Credit consider to be creditworthy? What kind of scores or credit profile is VW looking for in order go take advantage of the best finance and lease terms?
Also, what's the best deal (price, finance and lease rates) one can get on the New .:R (GTI)?
Thanks,
A.
@poops wrote:Up N Coming,
Thanks for being honest with your responses. I'm sure you will help out more than a few people on here...
What does VW Credit consider to be creditworthy? What kind of scores or credit profile is VW looking for in order go take advantage of the best finance and lease terms?
Also, what's the best deal (price, finance and lease rates) one can get on the New .:R (GTI)?
Thanks,
A.
First off poops, the R (I suspect you are referring to the Golf R) is an extremely low production vehicle. I have one of the larger VW Dealerships in the Tri-State area and am only getting two or three. Because of this it is completely unsupported by VCI's subvented rates and VWoA's rebates. I won't allow my salespeople to sell a car over MSRP but most other dealers in our area are getting a premium over MSRP for the R. So basically the best rate will be what an outside finance company would have.
To answer your other question about VCI, they are fairly strict. They have an excellent leasing portfolio. Here's a good idea of what to look for:
Scores Approval Tier
700+ A Tier (Usually auto approval)
680 - 699 A Tier (Analyst approval)
650 - 679 B Tier
620 - 649 C Tier
619 - D Tier (95% of Tier D are not approved)
Financing is a little more lax, but not much. VCI doesn't like to see recent baddies. Aged a couple years usually aren't too bad as long as the score is in place. Hope this helps!
Hey Up N Coming! This is great!!! I've been saving for the .:R for almost two years. I have two really really ugly baddies from 07, 08 (repos). I've since then been on a rampage trying to fix my credit to finance an .:R. Question, I have quite a bit to put down on a two door base rising blue, what are my chances with my repos. Also are you at Trent Vw if so.... !!!
@idream4success wrote:Hey Up N Coming! This is great!!! I've been saving for the .:R for almost two years. I have two really really ugly baddies from 07, 08 (repos). I've since then been on a rampage trying to fix my credit to finance an .:R. Question, I have quite a bit to put down on a two door base rising blue, what are my chances with my repos. Also are you at Trent Vw if so.... !!!
I think you mean Trend? No not Trend . So you are saying that you have 2 repos? How's your TU score?
Ouch what a fail, yes unfortunately I have two repos with a co-signer. The last time I checked, my TU was only a 631 (2 months old) I'm hoping to put a depo down on a Golf R and have delivery by my birthday which is the end of May. Rumors has it that the second or third allocation of orders begins early march or so. I'm on the vortex everyday . And thanks for responding.