How SC’s ‘full-spectrum’ lending program can benefit your dealership

Some dealerships still think of Santander Consumer USA (SC) primarily as a subprime or nonprime lender.

And that used to be true.

But talk to any SC area, regional or inside sales manager now and you’ll almost certainly hear the phrase “full-spectrum lender” to describe the Dallas-based company.

IL-BLOG_70918-1 (092617 IL Putting the power of the Extranet to work for your dealership)_Logo_300x300 (1)Because they can back that up with real-world success stories of dealerships that have taken advantage.

“We do fund deep subprime but that’s not a majority of our business today,” according to Robert Plemel, an Ohio area sales manager (ASM). “Discussions [with dealerships] help change the narrative that we are a subprime lender to the full-spectrum lender we are today.”

Santander, which operates nationwide through a network of nearly 13,000 “producing” franchise dealerships, received more than five million indirect loan applications and originated almost 400,000 loans in 2016 with an average FICO score of 573.

Obviously, that means many of those loans involved FICO scores into the 600s. In fact, about half of SC’s current applications involve credit scores of 550 or better.

So what’s in it for your dealership? Here is a power list from the SC sales team:

  1. Competitive pricing across the credit spectrum.
  2. Funding in as little as one day with higher scores.
  3. Increased participation through SC’s enhanced program.
  4. Higher LTV/PTI allowances with higher FICOs.
  5. Fewer stips on higher FICO scores.
  6. More backend with higher FICOs.
  7. Fees decrease as FICO increases in most cases.
  8. A better balance of business in your portfolio.
  9. Access 24/7 to our Dealer Extranet and powerful Rehash Tool.
  10. Access to our direct mailer program.

Finally, it means a stronger relationship with your SC sales manager that can help build your business by working with a motivated lender that is always seeking to improve dealer programs and results.

“From my experience, most higher-performing dealerships already are taking advantage of sending and booking higher FICO deals with Santander,” said ASM Bill Smith, whose territory covers northeastern Pennsylvania. “These higher-performing stores view us as a true partnership versus sending applications only when no other lender has approved the deal.”

“Santander has been a major driving force behind our success,” said Islam Hindash, managing partner of Mission Mitsubishi, San Antonio, TX, the brand’s top U.S. dealership. “We click over every deal with no exceptions, whether the customer is a 400 FICO or a 740 FICO, and see what Santander has to offer. And best of all the decision is there in less than a minute!”

Here are several other great ideas for dealerships shared by SC sales managers.

ASM Howard Greenblatt, who covers southern New Jersey, suggests that dealerships send all applications with a FICO/credit score up to 700. But Greenblatt is looking for applications with even higher scores (750-plus) on older used cars (2008-2011) “where we are most competitive with prime paper and have a niche where not many dealers know they can take advantage.”

“The SC prime program also can help dealerships capture the first-time-buyer market,” said ASM Elsa Castro in Los Angeles, who noted competitive rates for FICOs ranging from 575 to 650.

“LTVs on prime loans can help dealerships assist customers with negative equity situations,” she added.

Obviously, not every solution works for all dealerships, so if you have any questions or just want more information about submitting applications with higher FICO scores, talk to your area, regional or inside sales manager.

Or contact our sales department from the Santander Consumer USA website.

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