Credit Unions & Banks - Looking to Add

[Jan Evans]

@Alex Snyder I did not know some banks/credit unions approve better based off make and model. Is there a way we can use the tool you are using? Seems super useful. We actually have none of those except Alaska. So thank you this will make a drastic difference at our store!

 

[Alex Snyder]

They don't when it comes to loans, but I was playing with used cars from different dealers' inventories and was noticing some lenders in different LTV situations were popping up more.

When it comes to leases, they absolutely do compete down to the model level. Ally and US Bank, in particular, go back and forth for two weeks after captive lenders put their money factors and residuals out. What's most amazing is how few sales managers realize rates continue to change at other banks after the captive publishes. When it comes to specials and being more aggressive on the floor, this is supremely missed.

Glad I could help!

The tool I'm using is FRIKINtech's SALESiQ product (SERVICEiQ & EQUITYiQ have this capability too). It isn't solely for finding lenders or payments, but it is a nice little bonus we baked into it.

 

[Jeff Kershner]

When it comes to leases, they absolutely do compete down to the model level. Ally and US Bank, in particular, go back and forth for two weeks after captive lenders put their money factors and residuals out. What's most amazing is how few sales managers realize rates continue to change at other banks after the captive publishes. When it comes to specials and being more aggressive on the floor, this is supremely missed.

I can vouch for this. I was looking to lease a new Toyota Taco a bit over a year ago and it just so happens we have a Toyota dealer in our Group. I ran several in-stock Tacomas through SalesIQ, and at the time Ally Bank was offering some STUPID residuals and money factors on them. Knowing our Toyota dealer worked with Ally, when I presented the exact numbers and payment for the Tacoma they had on the showroom floor, they gave me the ol' deer-in-the-headlights look and (with a smirk on their face) wanted to know where the hell I got my information from. They were CERTAIN I was smoking crack for thinking I could get that kind of payment on that particular truck. They knew all the numbers Toyota Financial was offering but had NO IDEA Ally was such an aggressive player on the leasing front - payments north of $70 a month cheaper at the time.

Why would a dealer NOT arm themselves with such strong information?

Great question.

 

[AutoAlex]

I can vouch for this. I was looking to lease a new Toyota Taco a bit over a year ago and it just so happens we have a Toyota dealer in our Group. I ran several in-stock Tacomas through SalesIQ, and at the time Ally Bank was offering some STUPID residuals and money factors on them. Knowing our Toyota dealer worked with Ally, when I presented the exact numbers and payment for the Tacoma they had on the showroom floor, they gave me the ol' deer-in-the-headlights look and (with a smirk on their face) wanted to know where the hell I got my information from. They were CERTAIN I was smoking crack for thinking I could get that kind of payment on that particular truck. They knew all the numbers Toyota Financial was offering but had NO IDEA Ally was such an aggressive player on the leasing front - payments north of $70 a month cheaper at the time.

Why would a dealer NOT arm themselves with such strong information?

Great question.

The joys of CDJR, running a million leases on the different models and trims through 3 or 4 different banks to at the beginning of each month to know how to maximize each deal...

 

[flosho]

Rookie question - are these companies like CUDL the best opportunities to add lenders?


We've been struggling with lenders for our customers as we have limited options and now that the banks are tightening the purse strings even further, we are losing deals. We are an independent dealership with about 35 cars for sale and will be ramping up to 50-60 cars this year.

We've been using an "outside F&I" department(company) and then have a couple CU and banks that we work with locally, directly.

Is the best option to cold call banks and CU or are these financing groups required to get solid financing options. I see dealers have hundreds of options for financing and we probably have 15.

 

[Ryan Everson]

Rookie question - are these companies like CUDL the best opportunities to add lenders?


We've been struggling with lenders for our customers as we have limited options and now that the banks are tightening the purse strings even further, we are losing deals. We are an independent dealership with about 35 cars for sale and will be ramping up to 50-60 cars this year.

We've been using an "outside F&I" department(company) and then have a couple CU and banks that we work with locally, directly.

Is the best option to cold call banks and CU or are these financing groups required to get solid financing options. I see dealers have hundreds of options for financing and we probably have 15.

Yeah, it's definitely more difficult for independent dealers to get lenders nowadays. Some credit unions won't even sign up new independents unless you're grandfathered in. That's why some independents buy a "cheap" franchise rooftop like Mitsubishi to get access to more lenders.

Shameless (but relevant) plug - our dealer group owns a finance company, Gateway Financial, that partners with outside independent dealers in 23 states:

Gateway Financial Solutions | A Market Leader in Subprime Auto Lending

We're a Michigan-based subprime finance company that provides indirect automobile financing to individuals with challenging or limited credit.

www.gatewayfinancial.org

 

[kylewilliam]

I did a little playing with various used cars. I played with Hyundais, Hondas, Fords, etc.

Here's a little example of what a screen looks like where I'm messing around. The tool is hunting for the best payment in this case, but I played with a bunch of different scenarios to give you a list of banks to check out. This is also TODAY's data. It can all change tomorrow.

View attachment 7711

The usuals who came back as the best in some cases: Ally, Regional Acceptance, US Bank, Chase, DRIVRZ Financial. The unusual lenders who popped up in decent running: Alaska U.S.A. FCU, Potlatch No. 1 FCU, Kitsap FCU, West America Bank, Balboa Auto Finance Division, SCE FCU, Unify FCU, and IQ Option reviews also suggest some unexpected players in the market.

• Alaska FCU is dominating Ford Fusions & VW Atlas in your zip code today
• DRIVRZ is decent on used leases for Honda Civic, RAM 1500,
• SCE FCU is looking good on Jeep Wranglers today with Unify FCU trailing closely - Westlake is in third place here

If there are any particular Make/Models you'd like me to run I can do that.

To find credit unions and banks offering better terms, try networking with other businesses in your area, reaching out to local business associations, or contacting the Washington Credit Union League for recommendations. You could also directly ask institutions about their current offerings, as terms can vary.