June 2009

Lenders Looking Closer at Dealers

Many lenders are turning down new dealers and severing existing relationships due to poor funding ratios and poor paper quality. Therefore it is important to maintain your existing lender relationships. Not only does Priority One help maximize your F&I income, but we also help protect these relationships. By helping every customer, regardless of how they pay, we are able to identify finance opportunities for your lenders. Together we can ensure that your valuable lender relationships remain strong.

5 Tips for a Faster Approval
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While all of us at Priority One are working hard at getting you the fastest approvals and funding, here are some steps you can take to help.

1.     List all options on all units older than one model year. Some lenders are requiring book outs on all units older than one model year. When faxing your Purchase Order, send in an option list or ask your Business Manager for a blank checklist.

2.     Send in unaltered, original invoices for all new units.  Lenders are now looking for discounts on invoices. If they do not see a discount, they may call the manufacturer to verify the invoice.  Any discrepancies will delay funding and may jeopardize your relationship with the lender.

3.     Include multiple ways to contact the customer. Have the customer include their cell, home, and/or work numbers as well as their email address on the Purchase Order.  This will provide multiple ways to contact your customers.

4.     Notify your Business Manager of the manufacturer's warranty. This will help ensure the right Extended Service Contract options are made available to your customers, leading to a faster close and more profit for your dealership.

5.     Prepare the customer that lenders may require verification of income. Most lenders are requiring verification of income regardless of credit scores. For this reason it will be beneficial to have the customer gather their W-2 and most recent pay stub in advance.