How to Establish In House Car Dealer Financing for Your Dealership

Running a successful dealership requires more than having a good location and a lot full of vehicles. It even takes more than having a top-notch sales staff and a great website. Those things definitely help, but you can’t afford to overlook the importance of in-house financing, too. Understand how to properly set up your in house car dealer financing and you’ll enjoy a much greater chance of reoccurring success, year after year.

3 Steps for Setting Up In-House Car Dealer Financing for Your Dealership

Fortunately, plenty of other dealerships have successfully set up Finance Departments before. So, if you just follow these three steps that are proven to work, you can expect the same results.

1. Decide Which Financing Products You Want to Offer Your Clients

There are a number of different financing products you can offer clients at your dealership, so the first step is deciding which ones you’ll provide. If you’ve worked at dealerships before, you’ll probably have a pretty good idea which make the most sense based on the market you serve.

Once you begin contacting providers, they’ll be able to help with this choice too. Ultimately, you’ll have to decide, but their advice can go a long way toward ensuring you’re able to consider all of your options.

2. Pick a Lending Partner

In the past, most dealerships worked with a single local lender. This limited what they could offer in terms of financial products, but the majority of dealerships didn’t have many other options.

Today, that’s changed. Instead of working with a single lender, you can work with a lending partner like Vantage Finance. Vantage is not actually a lender. Instead, Vantage is a virtual finance company that connects auto dealerships with lenders that match each dealership’s unique needs and each of your customer’s unique needs.

Most importantly, this gives you more control over your customers, as you can finalize the sale and financing and deliver the vehicle without letting the customer leave “to get their money” with a Bill of Sale in hand and the ability to shop your deal against all of the other dealers between your store and the bank or credit union they are headed to.

3. Optimize Your F&I Department

Finally, F&I departments are far too valuable for independent dealers to not make them a constant focus of optimization.

Depending on your dealership size, this may mean hiring an experienced F&I manager to head your department and help it grow. Over time, you might find ongoing personnel sales and compliance training, technology updates and the introduction of new finance products will improve your bottom line profits.

Keep in mind that your F&I department won’t just help drive sales and increase your profit margins, it’s also a central means of improving customer satisfaction. That’s vital for improving your dealership’s reputation through word-of-mouth, but it will also help your online reviews. So, optimize your F&I department and you may see greater lead-generation and conversions.

Get Started on Your In-House Car Dealer Financing

In-house car dealer financing is essential to the success of your business. It’s also more than just a box to check, though. Set up your department ASAP and then get busy optimizing it, and you’ll soon find yourself profiting from this vital offering.

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In-House Car Dealer Financing Benefits

In-house car dealer financing offers a convenient solution for customers with poor credit who are unable to secure traditional financing options. By providing high-interest loans despite the higher risk, dealerships can expand their customer base and offer an opportunity for those with limited access to lending sources. This type of financing can help repair one’s credit over time if payments are made consistently and on schedule.

Expanding Customer Base Through Alternative Financing Options

Independent car dealers that provide in-house financing have the advantage of attracting a wider range of potential buyers, including those who may not qualify for loans from banks or credit unions due to their less-than-perfect credit history. In addition, offering in-house financing allows dealerships to establish long-term relationships with customers by assisting them throughout the entire car buying process – from selecting a vehicle to securing affordable monthly payments.

Helping Buyers Rebuild Their Credit Scores

Beyond expanding their customer base, in-house dealership financing also provides an opportunity for consumers looking to improve their financial situation. As they make consistent on-time payments towards their auto loan through this alternative method, it helps rebuild and improve their FICO score. Furthermore, some independent automobile finance companies like Vantage Finance report positive payment histories directly to major credit bureaus nationwide, which ensures timely payments will ultimately result in better overall ratings over time.

In-House Financing: A convenient option for individuals with poor or no established credit history seeking auto loans without relying upon traditional banking institutions such as banks or credit unions.
Expanding Customer Base: By offering alternative financing options, dealerships can attract a wider range of potential buyers who may not qualify for traditional loans.
Credit Rebuilding Opportunities: Consistent on-time payments made through in-house financing arrangements help improve credit scores over time while also establishing positive payment histories within major credit bureau databases nationwide.

In summary, independent car dealers that offer in-house financing solutions provide valuable benefits to both their business and customers alike. This type of dealership finance allows them to expand their customer base by catering to those with limited access to traditional lending sources while simultaneously helping buyers rebuild and improve their overall credit standings as they consistently make timely payments towards auto loan obligations agreed upon during the initial contract signing processes.

In-House Car Dealer Financing Benefits can provide a great opportunity for independent car dealers to increase their customer base and help buyers rebuild their credit scores.