I am a small auto dealership in TX. How do I set up financing options for my customers ?

Question

thanks

Answer 1

My good friend owns a small auto dealer. She simply went to the local "credit union" and set it up. They have what is called a "indirect lending" program.

Credit unions HERE are far better customer orientated than the banks. What a pleasure doing business with them.

Simple simple !! ; )

Answer 2

I've been wondering about that... Is there a way to implement an investment strategy along side of the banks?

Anyway, talk to 10 different banks. This may take a while. Casually let them know that they won't be the only financing agency. You may have to contract a repo agency if the banks won't handle that (I really don't think they will, but I'm no expert.). You may, of course, do the cloak and dagger stuff yourself (lots of fun, just don't land yourself in jail). You'll need a lawyer to speculate on everything that can go wrong, get him together with a hotshot accountant to do a good cost-risk analysis, etc...

I would look into having the customer sign an agreement to have a GPS installed in the car that will facilitate reposessions. Also, work out a system of late fees that will cover the cost of repos.

Repos are important because deadbeat customers are what will break your whole balance sheet. You'll need a bit more insurance, too, I'm sure...

Answer 3

What you need to do is hire an estblished finance director that has built up solid lender relationships. I have used my contacts and relationships to set up many dealerships with mutiple finance sources in my area. To start contact a rep with Credit Union Direct Lending - www.cudl.com and get signed up. that will open up a lot of options for you.

Answer 4

Contact Reynolds & Reynolds