Your lender programs are always updated monthly, and that means as business managers it falls to you to identify those changes, stay on top of them, and make sure you are in position to take advantage for your team and your customers. Because, when you understand the lender’s program it allows for a seamless approach in the sales process and more successful automotive loans. You will eliminate the headaches that come with re-signings that could occur when you don’t know the latest parameters outlined by the lender. Ultimately, understanding your lender programs puts the customers’ needs first, saving them hard inquiries on their credit profile and finding them the lowest rate. They save money and maintain their financial reputation – and that’s good business for everyone.
Everyone has access to these lender programs when they are updated monthly through DealerTrack or RouteOne. But, what separates the elite business managers from the average ones is how you organize those changes, how you structure your deals, and how you maintain your relationships with the lenders. When you combine a current, thorough understanding of lender programs and decisive, insightful actions, you become elite.
Begin by starting each month putting together a lending binder. Lending Binder contains info like interest rates by credit score, maximum loan-to value, and vehicle parameters such as maximum age and mileage. Save this info monthly to ensure that you are providing customers with the best possible loan for their new vehicle. This collection of information will outline every lenders’ program, from A to Z. By doing this you construct a valuable reference point that lets you know exactly where you are in every deal – not guessing at the results – and helps you ensure you are processing it toward profitability.
Armed with your lending binder and knowledge of your lenders, you are able to structure the most successful deal for the customer. Now that you have your binder, use it to know exactly which bureau the lender utilizes, which credit score gives which max advance, and which ancillary product is considered front or back end. Choosing the right lender can help you build more profitable deals by giving yourself room to sell more ancillary products.
Finally, it is vital that you treat your lenders like the external customers they are. When you cultivate the relationships with your lenders it creates lasting bonds that benefit the dealership – and your – long-term. Rates or numbers may change but strong relationships will last. Cultivate the personal relationships with buyers and funders at each of your primary lenders. Most decisions are made – or can be overturned – by people. Building close relationships can help you win more approvals on automotive loans.
Your inventory may be perfectly selected and your sales team might be expertly trained, but if the deals don’t go through – no dealership can be successful. That’s why understanding lender programs is crucial to your success.
MOTiiV specializes in improving the internal teams at car dealerships and in automotive sales, and we’d love to do that for your team. We’re always posting new tips & trends to promote growth at organizations that are just getting on their feet, or ones that could use a fresh set of expert eyes. Connect with our HQ and training facility at 972-725-7860 and see how we can help!