I am lost in the world of finance...please help!

[TONY H.]

Hi all! I want to start off by introducing myself as I am an extreme NOOB to this forum. I stumbled across it by Google'ing help for auto financing solutions. As my profile states, I have not come remotely close to figuring out financing. I had one finance person whom left for more pay to a franchise, but thats a whole nother story.

Before I decided to post my first topic, I tried searching for assistance in the past forums. I didn't come across any lucky, and wasnt really prepared to go through 250 pages that didnt relate to the keyword search.

I was previously using AppOne, but am now using dealertrack F&I. I am using another company for both DMS and CRM.

My current lenders are as follows:

• Carvant thumbdn: - GARBAGE TO THE MAX!!!!!!!!)
• Wells Fargo (who is an extreme hit or miss because they have been barely approving anyone for me)
• Westlake thumbdn: - GARBAGE TO THE MINIMUM)

I cant seem to get a single person approved. I am not sure what I am doing wrong. To give an example, I couldnt get a customer with 600 credit and $6k down approved for a $18k loan, at any rate. Meanwhile, another dealer with the same car got them approved with Flagship for whatever rate. I literally have no clue what I am doing.

I bounced back a few years ago from near shutting doors down. I was in college, fumbling both the dealer and school workload. Through the storm, my brother and I made it through, did over $4 million in gross sales 3 years consecutively, all WITHOUT FINANCING. 2018 was not a good year for us, as we lost a decent amount of money. All I ever heard people say was "YOU GUYS NEED FINANCING!!!!!!"

I have spent hundreds of hours scouring dealertrack lender list contacting bank after bank. The ones that we have arent approving, the ones that I want wont sign up. Others want you to use different systems such as Cudle or RouteOne. Its as if I am being tugged in multiple directions.

Are there training seminars, web videos, different banks, different solutions that I need to be looking into? How are other dealers that I know approving near ghost customers for $25k cars and I cant get a decent family approved for $18k with $6k down?!?! How can I finance a customer without the lenders trying to take $3k in lender fees from the deal??

Any help would be extremely appreciated. I am at my wits end.

Also, what do ya'll think of dealertrack for DMS/contracting etc? I think they offer good mobile solutions from what I have been seeing on their site, but havent made the jump yet.

Thanks ladies and gents!

 

[john.quinn]

Hi Tony -- are you able to actually speak with any of these lenders or are you getting insta-bounced?

Finance, like everything else, is often relationship driven. If I'm getting bounced with $6K down, I'm on the phone talking to the guy or gal who rejected the app. You'll probably find out that the "computer" rejected the app for whatever reason.

First thing I would do is get on the phone and find a person at the bank to walk you through their stips. Make a friend or two -- do someone a favor and a favor will be returned.

Good luck!

 

[TONY H.]

Well one of the rejections was westlake, whom i find to be absolutely ridiculous. I left westlake in 2012, and now I remember why. They wanted $3400 for the lender fee!

I actually did call and talk to the reps, but none were willing. I actually came across another feed that said to contact more local banks instead, to where you can have face-to-face meets occasionally.

What do you think?

(And im up for greasing up someone for a return - pg13 lol - fun bribery or collosion haha)

 

[john.quinn]

Absolutely go local! Knock on some doors. Credit Unions often act a lot differently than the biggies. Make some friends -- it will definitely pay-off.

---- Just remembered a gig we ran back-in-the-day. We made a good, mutually beneficial relationship with a credit union. I don't remember all the specifics, but the gist was that we'd help get people signed-up for their services in return for them buying the paper (and a decent acq fee).

 

[TONY H.]

where I am, is a swamp of dealers, both indy and franchise. The local credit unions, the ones Ive spoke, to, have referred me to CUDLE. My funds are not unlimited to where I can just go and throw $600 a month on CUDLE, hence the move over to dealertrack.

So far Ive had luck with C&F and Flagship is in the works. I just dont know what the rate sheet with these guys are yet. I have yet to do a deal with them.

 

[john.quinn]

Good th

I have yet to do a deal with them.

Good thing you're in the "deal" business

They'll call me a dinosaur, an old-timer, and I guess I am. But all that implies "experience." And in my experience, the more you rely on your 'people,' skills -- your relationship-building skills -- the more successful you are.

Software is a tool, to be wielded. The more skilled the user, the more effective the tool. I wouldn't expect a hammer to be very useful to a person with no arms, no matter how well the hammer was made.

 

[TONY H.]

Hahaha. In the words of Anthony Soprano, “i hear that!”

 

[Tallcool1]

Tony, welcome to the Dealer Refresh Forum! You are in the right place.

First off, find me on Facebook. I will get you into a couple of Closed groups that are for Independent Dealers only. You gotta be the dealer, not an employee. Once we get you in there, we can find some solid dealers in your area and get you hooked up!

https://www.facebook.com/clint.jones.16547


How you got Wells Fargo is beyond me! I can't get Wells and I have been in business 10 years and in THE business for 30!

Vantage Finance might be an option for you depending upon where you are. They are a broker that works with dealerships that are short on lenders. They have the relationships. Sure they charge a fee, but it is minimal.

Log into Dealer Track, and find the tab that will tell you what banks do business in your state. Then get on the phone. Call and talk to each one. Find out what they are looking for in a deal. Every one of them likes something different...and of course dislikes something different. Put on your big boy pants for this part because you will hear the work NO...a lot! But you will hear yes as well.

$6,000 down on a 600 FICO should be a deal somewhere, depending upon what the 600 FICO looks like.

Talk to your F & I vendors...the people that you get your warranties and gap insurance from. Get their asses into your store ASAP. These guys are typically old F & I guys and they have the answers you are looking for. They know you and your market. Get these people involved.

Finally, a Dealer Refresh member that I might actually be able to help!! I am primarily an information leach in here. I don't bring much to the table, but I damn sure learn a lot!

 

[kanseruden]

Be careful when you take loans from private companies. Most often, these are collection offices that pose as credit companies and issue loans at very high-interest rates, and when you refuse to pay the loan, they start to ruin your life and you have to pay it. You can learn more about Private Debt Collection Agency on the Internet, it happens that they buy loans from other credit companies and they have very little data about you and you can hide, but if it's a hidden collection company that pretends to be a credit company, you won't be able to hide from them. Be careful when applying for a loan and read the terms of the contract carefully.

 

[ConnorWelch]

You need to develop an action plan so as not to get confused.