As an independent dealer, you understand the importance of securing solid financing options for your clients. After all, offering retail financing is the key to helping you sell more cars as well as boost your bottom line with backend products. But how do lenders view your independent dealership?  It boils down to risk and cost.

Lenders generally view independent dealers as an increased risk over franchised dealers because independent dealers are usually operating with lower capital.  Also, not being protected by the umbrella of a larger entity, there’s a lack of security that comes with the guidance and oversight that a new car franchise offers.

So what exactly are lenders looking for and how does your dealership stack up? 

  1. Most lenders start by using their own historical data to calculate risk.  They’re looking for dealerships with similar characteristics to other dealers who have a strong history of well-preforming portfolios.  They’ll be looking at how long your dealership has been in business, location and if you’re in good standing with the state motor vehicle commission.
  2. Lenders are also looking for strong personal and business references.  These indicators are crucial and can play a large part in gaining access to a new retail financing source.
  3. A lender will want to review your credit history, again both personal and business. They’ll take a look at your recent accounting statements to get a better understanding of your financial situation and get an idea of your cash flow situation and practices.  If you’re strapped for cash, most lenders will not be eager to extend more credit.

Where should an independent dealership turn to get quality retail financing?

At Vantage Finance we’re proud to serve the independent dealer market.  We can help your independent business grow with a variety of finance options. To become a Vantage Finance dealer contact us today!