How dealers can minimize fees on deals with Santander Auto Finance

032415 IL How dealers can minimize fees on deals with Santander Auto FinanceOne of the great things about tax season at the auto dealership is the opportunity to increase sales. More customers + tax refunds = profit.

Obvious, right?

Sometimes, different fees can cut into the bottom line. When working with nonprime customers, avoiding fees may seem like an impossible feat. Discrepancies in everything from collateral to contracting can cost dealers additional time and money. However, Santander Auto Finance (SAF) has ways to minimize fees when working with your deals.

Here are nine steps in the right direction toward reducing fees:

  1. Structure deals with the lowest LTV possible

Low LTV deals have our lowest fees.

  1. Avoid high depreciating collateral

Honda, Toyota, Nissan, Infiniti, Lexus and Acura have higher recovery rates. Saturn, Kia, Suzuki, Mitsubishi, Oldsmobile, Plymouth, Pontiac, Hummer, Saab, Daewoo, Mercury and Isuzu vehicles have low recovery rates and may be subject to additional fees.

  1. Submit full deal structures

Submit deals that include collateral (vehicle make, model, mileage, and book), down payment, LTV and amount financed.

  1. Follow your approval terms

Contract your deals according to approval terms and financial section of your callback. Fees may be assessed if your contract does not exactly match your approval.

  1. Avoid expired approvals

Send complete funding packets with all documents to ensure that the contract moves quickly and smoothly through funding. Expired approvals may be rejected or subject to additional fees.

  1. Stay within state maximum interest rate limits

Contract using approved rate on callback. Rates contracted higher or lower than approved may be subject to re-contracting.

  1. Submit clean contracts

Clean contracts help prevent them from being “kicked” and thus avoid fees upon resubmission.

  1. Minimize exceptions

Exceptions to SAF’s underwriting and funding guidelines may result in additional fees. Work with your buyer to structure the best possible deal.

  1. Minimize rate buy down

Knowing the usury laws in your state will help you select the best collateral to structure a deal with lower fees.

If you have questions about structuring the best deal, contact your Area Sales Manager. You can also log in to the Dealer Extranet and take advantage of our Rehash Tool to adjust your structure and get real-time results.

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