How to get into financing subprime for my small indep dealer

Jay  Sims


a little back story


for many years sold cars i purchased with a connections with local towyards in southern california. Always planned to get into the game 100% and get licensed etc.. Due to the California Economy going to such crap i eventually moved to Arizona.

Went ahead and got my Used Car Dealers License and of course started to buy and sell. 

I have always dealt with cash customers as the vehicles i sold rarely were more than $7500 sell price. But now being a licensed dealer id like to go into the higher sell prices. But obviously that gets tough with cash only and need to find some financing. 


My only problem is i dont have a clue whatsoever where to start to get into financing. Meaning i dont know where to go to start relationships or how. I do see the lender companies out there and im still a little confused. I am in no way a dummy when it comes to business as i have been in retail prior as an owner. 


Can anyone give me some pointers on how i can either establish something to i can just start to finance SOME deals As to start making a relationship as well as learning on how to do it all properly. 


Some one suggested BHPH, but im not interested to do that.......yet

Im in no means a large operation or even a mid size. I have a lot and office and i buy and sell cars about 10 a month at the moment. Obviously i could do more if i could get financing for my clients. My MAIN method of sales is word of mouth and internet. Walk up customers are really not my strong suit. Not much around. But alot comes in from ONLINE.

I want to establish relationships with the lenders but also I need to LEARN on how to actually process the papers etc how they want it. 

Im a rockstar at buying and selling  but not much clue when it comes to acquiring financing for my buyers.  Obviously know the pricing they go off and some info on miles and years. But my main dilemma is how I can learn to get the deal papered properly so my funding doesn't get delayed. I guess my question is more like to get the car financed is it gonna take an arm and a leg to learn it or it's not as hard when it comes to used cars and subprime ?



mark rask

Subprime can be tough.....make sure you have someone that completely understands the ins a nd outs of it

Jamil The Carman

@Jay Stay away !! if you are doing good with what you have now just stick to it .Subprime can get you out of business and eats up your money .We are 120-130 car lot in Souther California and we avoid doing subprime .But if you insist I'll be happy to connect you with some of my vendors and reps .


Jay  Sims

Jamil, I just want to be able to finance some deals not a bunch 


but I need to learn about it first. How the deals are processed etc

Sean Kelley

If you want to get into subprime, you own your own lot, and you want fast funding. I recommend starting with one easy to use lender, and just dabbling a little until you get comfortable with it. 

I would get yourself set up with Credit Acceptance. They pay you with a front end advance. You also get the money down from the customer and have  a very user friendly site. YOU get to be the analyst, and they offer 2 and 3 day training programs to help dealers like you learn the system and get started. 

If you use their system well, you will create your own portfollios or "books" that will eventually pay out long term as the initial advances are paid back from the customer. This can create a lot of residual income for a small dealer. 

I have been using the program for a decade and am happy to answer any questions for you if you like. Just send me a message if you want.  

Joe Perri

I agree with Sean if you are looking for something simple to work with and learn. Subprime is beast. Unless you know how to craft a deal to be bought and funded by a lender stick with the DIY lenders IE: Credit Acceptance, Westlake, Lobel Financial (be careful with them though they are known to screw you out of money, I know from experience.) Those few have a system where you input the information yourself and tweak the deal to make it work for you and your customer. Always be ready for those dreaded high discounts as well though. Cash down in this business is key.

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