Originally Posted by Akers04Coupe
Ford, Lincoln, Caddy, Nissan, Infiniti,Mitsubishi, Kia...no high $$$ lines right now, although Infiniti is almost there the way they have BLOWN up.
Our biggest sub-prime is Santander..they seem to buy ANYTHING but there fees are awful, but this is the case with most...We have 2 Fi Managers in each building, so 16 total right now, our highest volume lot does about 140-180 cars a month...and about 65% being sub-prime its challenging
Ally, Americredit, PFS, UACC, Summit, Nicholas, Cap1, Regional, American General, Safco, Westlake, MarkOne, American Credit Acceptance, Flagship, Chase Custom Subprime, CPS
There are 16 banks that are doing sub-prime or near prime and buying pretty strong too. If you are going to play in the subprime pool then you guys have to market your cars for it. My business is 100% subprime & I love my customers. They have the craziest stories and are typically an easier sale. You guys must have some pretty strong income up there in TN if you are putting everyone in $400/mo payments. I wish my customers had that kind of income, but I get a lot of $2k/mo. I think DriveTime is the only ones crazy enough to do 2-25% PTI these days.
You must have a director that oversees everything. If you guys are getting 65% subprime but are only using Santander that has a look to book + only about a 20% capture rate then you guys must be losing a TON of business.
From my math if you are doing 140 units/mo & 65% are subprime. That equals 91 units/mo going subprime. Drive only captures 1/5 deals they approve (on the high side) - that means that you guys are submitting 455 subprime deals?!? If the average dealer spends $500-$1000 to get a single customer in the door based on advertising, floor plan, insurance, utilities, etc. then you guys are spending $227,500 min per month to get those 91 deals. You have to be netting at least $2500 per copy after pack & dealer fee just to break even.
You are darn skippy that you need more banks!!!