Auto Loan Denials

Daniel

On average how many customers would you say are denied auto loans due to bad credit on a monthly basis?  Those that are denied credit, what do you do for them or are they just dead in the water?

Derrick Woolfson

It varies greatly, and also depends on the lead source - bad credit deals can actually be very lucrative for the dealership. However, from my experience, there needs to be a dedicated manager or finance manager that handles these deals. As the deal, itself, it takes a lot of work and knowledge - everything from understanding the LTV, and Book out value to name a few. That said, there are also "red flags" that can be spotted when reviewing credit apps, so we have a process to hand all credit apps over to the sales/finance managers, and let them work directly with the customer. 

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