Dealer Direct Financing

  • Convenience – one-stop shopping
  • No need to take time from work to schedule and attend appointments to submit loan application
  • No need to take time from work to return to a bank branch to pick up draft and sign papers
  • Open agreements
  • Low interest rates
  • Fixed/Variable interest rates
  • Flexible down payment policy
  • Tailored loan packages
  • New source of credit
  • Payment protection plans available (Life/Disability/Involuntary Loss of Employment/Critical Illness)
  • Speedy approvals
  • Vehicle Lending Specialists

1) THE BENEFITS OF DEALER DIRECT FINANCING: When people finance their units through a bank branch or credit union, they usually have to make two trips to the institution; the first trip to meet with a loan officer to make an application for credit and the second to sign the loan documents and pick up the bank draft.

When your customer finances through your dealer direct plan, they experience the convenience of “one-stop shopping”. They can finance/lease their unit all under one roof. And since the dealership’s Business Office is open when the showroom is open, your customer has the ultimate convenience of being able to arrange their financing in the evening (when their bank or credit union would normally be closed). Your customer simply signs the loan documents when they pick up their unit.

2) OPEN AGREEMENTS: Many of your customers will ask if your loans are “open”. The answer is “yes”. Dealer direct loans are Conditional Sale Agreements (CSA), which is a loan where the unit they are purchasing is the only item held as security and a loan that can be paid into or paid off at any time without interest penalties (unlike most home mortgages). This allows your customer the flexibiliy to put as much money towards the loan that they choose, at any time they want. It also allows your customer to pay off the entire loan faster, before the maturity date, without paying all the interest.

3) LOW INTERESTS RATES: Because dealerships do such a large volume of loan business, dealer direct plans pass onto dealership customers very low interest rates. In many cases, the interest rates you can offer your customer are lower than what a bank or credit union branch can offer. At the very least they are competitive.

4) FIXED/VARIABLE INTEREST RATES: A fixed interest rate means that be Interest rate stays the same, locked in for the term that your customer chooses. A variable Interest rate (also known as ‘floating” or “fluctuating” rate), means that the Interest rate can go up or down during the term of the loan agreement.

Some customers prefer a fixed interest rate tor the ‘peace of mind” of knowlng that their payment will never go up and knowing exactly how much their payment is each and every month.  For those who prefer a variable rate, the payments will remain the same and if there are jumps in prime, the lender would send notification to the customer.  It is only at the end of the term that the customer either would end up having a few less payments/few more payments, depending on how the rate has fluctuated during the period of the loan.

Some Dealer Direct Plans glve you the flexibility of offering your customers both fixed and variable rates.

5) FLEXIBLE DOWN PAYMENT POLICY: Your customers can put as much or as little down payment as they choose toward their loan agreement provided they have a good credit rating. Your customers can even choose to put NO money down whatsoever, and finance 100% of the vehicle and taxes.

6) TAILORED LOAN PACKAGES: Many manufacturer’s dealer financing offers graduate rebate program plans that allow recent college and university graduates to qualify for a new vehicle loan with only a small down payment and no co-signer. Some dealer direct financing will allow the payment date to be changed to suit your customer’s bill paying habits. And, as mentioned in the previous point, your customers can put down as much or as little money they choose toward the loan agreement to achieve a payment that they are comfortable with.

7) LIFE AND DISABILITY INSURANCE AVAILABLE: Most of your customers that have mortgages on their homes have them protected with life and/or disability insurance. Many want that same protection for their vehicle purchases or leases.

You can offer your customers affordable life and disability creditor insurances. With life insurance, in the event that the purchaser/lessee dies before the end of the loan period, the remaining loan balance is paid off by the insurance company, leaving the vehicle to the estate free and clear. With disability insurance, in the event that the purchaser/lessee is ill or injured and unable to work at their regular job, the vehicle payments are made on their behalf by the insurance company until they are able to return to work.

These policies are available for the buyer/lessee or the co-buyer/co-lessee, or for both. The insurance can be paid by lump sum or by amortizng them over the payments of the loan agreement.

8) NEW SOURCE OF CREDIT: By financing through your dealer direct financing plan, your customer establishes a new source of credit. Having several relationships with different lending institutions is important in that it allows your customers to shop and compare financial services in the future. More importanty, by having several relationships, it is easier to attain more credit as opposed to consistently asking one bank for all your money needs. A simple example; it is easier to get a Visa card with a $32,000 credit limit as well as a Mastercard with a $2000 limit as opposed to just a Visa card with a $4000 limit. More credit can he accumulated by “spreading it around’.

9) SPEEDY APPROVALS: Once an application is sent via dealer direct financing, with some automated systems, dependant upon a customers credit and debt load standing, it can be approved in minutes.  For other scenarios, we are able to secure approvals and disclose within a couple of hours/same day.  We make every effort to ensure we respond to your customer’s financing needs within a reasonable amount of time and with our hours of availablity, we are able to contact customers when it is most convenient for them.