kim asked:
We own a small car lot. We sell primarily pre-owned executive, pre-leased company owned vehicles. Most of our cars we sale a little above wholesale. The problem we are having is that most of the customers that come to us want financing; the problem is usually because of poor credit. So the banks,etc. wont touch them.
We are to small to finance them out our-selves and because we only carry eleven no more than fifteen vehicles at a time we can not find any of these companies that will finance out high risk individuals. The requirement i have run into is you must have a quota of at least 50 cars on the lot and a sale of at least thirty a month in order for them to do it. I need help on this; surely there is some-one who will help out companies on a extremely small scale. If i had more options for my customers my sales would be more, it has been a crutch.
I have spoke with the credit unions, small banks, and I checked on GE but the only finance parts etc., not sales of cars
We own a small car lot. We sell primarily pre-owned executive, pre-leased company owned vehicles. Most of our cars we sale a little above wholesale. The problem we are having is that most of the customers that come to us want financing; the problem is usually because of poor credit. So the banks,etc. wont touch them.
We are to small to finance them out our-selves and because we only carry eleven no more than fifteen vehicles at a time we can not find any of these companies that will finance out high risk individuals. The requirement i have run into is you must have a quota of at least 50 cars on the lot and a sale of at least thirty a month in order for them to do it. I need help on this; surely there is some-one who will help out companies on a extremely small scale. If i had more options for my customers my sales would be more, it has been a crutch.
I have spoke with the credit unions, small banks, and I checked on GE but the only finance parts etc., not sales of cars
Have you tried any local credit unions? I know a few people who were high risk and were able to finance through a local credit union.
Your sales price is too low because it doesn’t properly reflect the credit risk of your customers. You are attempting to shift this risk to lenders when you should bear it yourself (and then shift it to the customers).
I have found that the best way to do what you want is to find a small town bank somewhere and make friends with the loan officer and president. They have a lot more discretion in who they loan to than the big banks do. The key is to make sure that you don’t ***** them with deadbeats. As long as they make money, they will loan you all you need.
If that’s not possible then the only company I know of that does what you want (or did..its been 4 years since I was in the business) is GE Money(formerly GE Capitol).