Archive for the ‘News’ Category

WHERE’S THE BRIEF

Your 30-second guide to the latest news, updates

102518 IL WHERE'S THE BRIEF Your 30-second guide to the latest news, updates

Just Win! Broad-spectrum lending 

Why you should finance more deals with SC 

Run the option to score more customers 

Fraud risk and ‘Driving a New Model’ 

Spot On! Paul Clark Volkswagen 

How to recognize elder abuse fraud 

How to avoid straw buyer fraud 

How to change odds vs. application fraud 

Identity fraud can take ‘enormous toll’ 

What you need to know about fraud risk 

 

Running the option is a smart way to score more customers

The Dealer Extranet.

It’s the play call that can help you score more deals with Santander Consumer USA (SC).

Featuring competitive advantages such as the Rehash Tool, which provides the quickest possible turnaround time on new deal options, and a customized dashboard that offers daily stats, notifications and reports on your deals with SC, it should be part of your everyday game plan.

“One of our greatest assets is our Dealer Extranet, especially for high-volume dealers,” said Stephen Rivelli, an SC Dealer Relationship Manager (DRM) in New York.

110618 IL Running the option is a smart way to score more customers“The ease of use and the multi-functionality of it, from rehashing an application to funding, allows my dealers a fast, user-friendly experience from application to funded. I stress the importance and use of the Extranet with all my dealers … [and] they usually see the light.”

In fact, thousands of dealership sales associates already have recognized the value of the Extranet and use it to maximize their results with SC and to manage their businesses better.

The Extranet is the next best thing to having your buyer on the line. You have real-time access to information and systems that can get things done.  If logging in to the Dealer Extranet is not a part of your regular routine, you could be missing out.

 

 

Here are five of the top uses of the Dealer Extranet:

  1. Rehash Tool – If you need to update the numbers or revise the type of vehicle being purchased, plug your new information into the Rehash Tool and receive a new structure in real time.
  2. Track deals in Funding – The Extranet will allow you to check the status of your deals in Funding and see if you need any additional documentation to complete your deals.
  3. Upload stips – This is a lot faster and easier with the Dealer Extranet. You bypass the hassle of faxing, and the stips go directly to the funder’s queue.
  4. Print a purchase letter – Get a breakdown of the total funded amount for your deal. The purchase letter shows all applicable fees, participation and discounts.
  5. Access the Dealer Resources – This section is a one-stop area for important documents. Just about any document a dealer needs to do business with SC can be found on the Extranet.

You can make the Extranet an integral part of your dealership’s routine by asking your DRM to set up a new user login – or logins for multiple users at your store. Your DRM also can help you discover the many features the Extranet provides your activated account.

Your DRM also is available to answer any questions that might arise or to reset your password.

When you’re set up on the Dealer Extranet, you can log in here and use it whenever you want. And put the power of the Dealer Extranet in your competitive playbook.

What you need to know about fraud risk and ‘Driving a New Model’

Fraudsters never rest.

And they may be headed to your dealership.

But Santander Consumer USA (SC) is committed to providing the information you need to fight back.

Our series, Driving a New Model, should help dealers spot the red flags for identity fraud, application misrepresentation, straw buyers and elder abuse, and includes actionable checklists.

“Awareness of fraud and elder-abuse red flags will allow you to take steps to reduce these risks and will result in a number of benefits,” says the SC pamphlet, Driving a New Model | A dealer guide to recognizing the warning signs of fraud, identifying suspicious buyers and taking action to reduce costs.

Driving a New Model suggests those benefits could comprise:

091818 IL What you need to know about fraud risk – and why you should care_V4

  • Improvement in the overall customer experience
  • Reduction in consumer harm and risk to the dealer’s reputation
  • Reduction in credit stipulations on an application
  • Reduction in funding delays to dealership
  • Reduction in post-funding disputes and potential unwinds

“Establishing a partnership with lenders is the best way to fight fraud,” wrote Frank McKenna of PointPredictive consulting firm in a separate Digital Dealer Magazine report 5 Reasons Car Dealers Should Be Concerned with Fraud. “Since lenders have more tools to diagnose and detect fraud, they can help you understand the impact to you before it ever happens.”

“Good collaboration on fraud is the key to winning the war on fraud,” according to McKenna.

And, as far as SC is concerned, “We actively seek your feedback and your insights into trends and concerns related to the risk of fraud or elder abuse,” says Driving a New Model.

Here are the five parts of our series:

Part 1: What you need to know about fraud risk – and why you should care

Part 2: Identity fraud can take ‘enormous toll’ on your dealership profits

Part 3: How to change the odds in your favor against application fraud

Part 4: What straw buyer fraud could mean to your dealership and how to avoid it

Part 5: How to recognize elder abuse if your dealership is targeted

But the fight against all types of vehicle-purchase fraud doesn’t end at the dealership door.

If you notice unusual behavior or information by applicants, please contact your SC Dealer Relationship Manager who can direct these concerns to the appropriate team to review.

Fraudsters never rest, and neither should you.

Together we can stop fraud.

Paul Clark Volkswagen

122 Liberty St.

Brockton, MA

Dealer principal: Paul Clark

General manager: Michael Girard

Brand represented: Volkswagen

How long in business: 72 years (third generation)

No. of employees: 25

Annual unit volume (approximate): 500

SC Dealer Relationship Manager: Joshua Busa

SpotOnGIF_600px (1)

DRM comment on what makes dealership special:

Paul Clark VW is a family-owned and run dealer that promotes an atmosphere of acceptance and help for all applicants across the spectrum. Customers are treated as equally important here no matter what their situation may be.

Mr. Clark has allowed his finance director, Michael Tishman, to work with the banks that he feels fit his customers’ needs best, and Santander Consumer has taken the role as his No. 1 non-prime bank.

Michael has taken the time to learn our program in and out and, as such, has consistently pieced deals together with us week after week despite the Volkswagen brand not being one of more high-volume vehicle lines. As a DRM, I always feel welcome at this store, and consider my visits there productive and valuable on both a personal and professional level.

How long working with Santander Consumer USA: Six years

What do you like about doing business with Santander Consumer USA:

We at Paul Clark Volkswagen enjoy the speed and efficiency that Santander Consumer USA operates at every day. Everyone we speak to is knowledgeable and hard working. Because of the professionalism of Santander Consumer USA our deals close the first time, and that helps with our cash flow and increases our ability to grow our business. Santander Consumer USA is our best bank – bar none!

One best practice that contributes to your dealership’s success:

One best practice that contributes to our success is [Santander Consumer USA’s] rehash tool. The rehash tool allows us to “discuss” deals without the typical phone calls and “phone tag” delays. We can make adjustments and get qualified customers into vehicles more efficiently.

Describe your experience with Santander Consumer USA:

We would like to spotlight your RoadLoans program. RoadLoans provides to us additional qualified approvals that we never would have received through our traditional resources. These extra deals can make a mediocre month into a good month.

We enjoy our relationship with Santander Consumer USA. From Joshua Busa, our Dealer Relationship Manager, to everyone that gets our deals approved and funded, we truly feel like partners. Thank you!

– Michael Tishman, Finance Director

Paul Clark, President

How to recognize elder abuse if your dealership is targeted

It sounds awful, because it is.

The illegal, unauthorized or improper use of an older individual’s resources by a caregiver or other person in a trusting relationship for the benefit of someone other than the older individual.

“This includes, but is not limited to, depriving an older person of rightful access to, information about, or use of, personal benefits, resources, belongings or assets,” according to the Enterprise Fraud Management (EFM) team at Santander Consumer USA (SC).

Examples include forgery, misuse or theft of money or possessions; use of coercion or deception to surrender finances or property, or improper use of guardianship or power of attorney.

091818 IL What you need to know about fraud risk – and why you should care_V4Nationwide, seniors lose billions of dollars a year to elder financial abuse, according to a survey conducted by Consumers Union, publisher of Consumer Reports magazine. While much of that abuse is unrelated to vehicle purchases, it is important for dealerships and lenders to watch for the signs that a buyer/borrower may be a victim of elder abuse because of financial effects on everyone involved.

“We have seen an uptick in activity and awareness with elder abuse investigations at SC and amongst our peers in the Auto Industry,” said Mark Kasak of the company’s EFM team.

RELATED

What you need to know about fraud risk – and why you should care (Part 1)

Identity fraud can take ‘enormous toll’ on your dealership profits (Part 2)

How to change the odds in your favor against application fraud (Part 3)

What straw buyer fraud could mean to your dealership and how to avoid it (Part 4)

One report in a small-town newspaper in Georgia recounted how the niece of an elderly couple obtained guardianship over her uncle and aunt, then discovered that a sitter had stolen money from them to put a down payment on a vehicle for her boyfriend. The niece also discovered that her uncle’s name was on the car loan, but that the title was in his and the boyfriend’s names. There was no indication that the car dealership participated in the fraud.

“Perpetrators of elder financial abuse are often family members, friends, caregivers or the common predatory scammer, but the result is usually the same,” said the Massachusetts Office of Consumer Affairs. “The victim is robbed of his or her savings or income and left in despair.”

Here’s what Santander Consumer USA’s Driving a New Model | A dealer guide to recognizing the warning signs of fraud, identifying suspicious buyers and taking action to reduce costs suggests to look for to reduce elder abuse fraud risk at your dealership:

The Red Flags

  • Buyer applies with an older adult to be the co-buyer
  • Older adult can’t come to dealership to sign contract
  • Older person makes statements like “I’m only here to help”
  • Applicant and co-buyer have different addresses
  • No reasonable benefit to the older adult in the vehicle being purchased
  • Older adult is on a fixed monthly income that does not support the vehicle payment

And the Checklist

  • Both applicants present at time of contract signing
  • Don’t allow the contract to leave the dealer premises
  • Ask about power of attorney and caregiver relationship
  • Ask older adult for independent references and contact the reverences

“Santander Consumer USA (SC) is committed to working with dealers to raise awareness of fraud and elder-abuse risks in the retail auto space,” says Driving a New Model, which was created by SC’s fraud management group. “Watching for red flags is the most cost-effective way of preventing fraud and reducing expenses related to fraud, reputation, regulatory and financial risks.”

This series, Driving a New Model, is aimed at helping dealers spot the red flags for identity fraud, application misrepresentation, straw buyers and elder abuse, and includes actionable checklists.

What straw buyer fraud could mean to your dealership and how to avoid it

Beware the straw buyer.

That is, a purchaser who looks like the real thing – but isn’t.

The buyer could be someone purchasing the vehicle for a consumer with disqualifying credit issues, or he/she could be “a criminal who is perpetrating a fraud scheme.”

Such as the Wisconsin man who authorities have charged with a dozen counts of money laundering that involved selling luxury cars overseas by defrauding local car dealers. Using dozens of straw buyers, the man allegedly secured $30 million in financing to buy the vehicles.

091818 IL What you need to know about fraud risk – and why you should care_V4“To a lender, a straw buyer might look like a real buyer,” wrote Frank McKenna, chief strategist at PointPredictive, a consulting firm specializing in fraud prevention. “[But] their whole purpose is to get a lender to give money to an organized group of crooks.”

As in the Wisconsin case, selling to a straw buyer or buyers can hit a dealer’s bottom line hard.

RELATED

What you need to know about fraud risk – and why you should care (Part 1)

Identity fraud can take ‘enormous toll’ on your dealership profits (Part 2)

How to change the odds in your favor against application fraud (Part 3)

“Lending to straw buyers/borrowers often leads to extremely high levels of default … In fact, most loans will default without a single payment,” wrote McKenna, who calculates that “at an average loss of $24,000 per fraud occurrence, your dealership is forced to sell 10 cars to make up for a single instance.”

Here’s what Santander Consumer USA’s Driving a New Model | A dealer guide to recognizing the warning signs of fraud, identifying suspicious buyers and taking action to reduce costs suggests to look for and to reduce straw buyer fraud risk at your dealership:

The Red Flags

  • Applicant is declined and then returns with a co-buyer
  • Co-buyer has a different last name and/or address
  • Applicant asks to take contract to co-buyer
  • Primary and co-buyer continue to change on the same vehicle application
  • Insurance policy lists multiple vehicles with different last names

And the Checklist

  • Both applicants present at time of contract signing
  • Don’t allow the contract to leave the dealer premises
  • Ask for references on both applicants, and contact the references
  • Ask who will be making payments while both applicants are present

“Santander Consumer USA (SC) is committed to working with dealers to raise awareness of fraud and elder-abuse risks in the retail auto space,” says Driving a New Model, which was created by SC’s fraud management group. “Watching for red flags is the most cost-effective way of preventing fraud and reducing expenses related to fraud, reputation, regulatory and financial risks.”

This series, Driving a New Model, is aimed at helping dealers spot the red flags for identity fraud, application misrepresentation, straw buyers and elder abuse, and includes actionable checklists.

High-powered, hurry-up offense features broad-spectrum lending play

The fourth quarter has arrived, and you’re still in the game.

But great teams finish strong.

With the holidays still ahead, your team has a big fourth-quarter opportunity to win in 2018 with an offensive strategy that will keep you on target.

Santander Consumer USA (SC), as an important part of your team, will bring every option to the game, including a hurry-up offense featuring broad-spectrum lending and aimed at achieving your sales goals before the final whistle blows.

100418 IL High-powered, hurry-up offense features broad-spectrum lending play_750x236

Although best-known as a subprime lender, SC has incorporated near prime into its offensive playbook. That should help put points on the scoreboard with more financing options for your customers.

“Santander has definitely widened its customer base in the past few months,” said Carlos Pedre of AutoNation Chevrolet Doral in Florida. “Definitely a much larger credit spectrum lender now. Long gone are the days when we looked at Santander only for the subprime customers.”

You call the plays, but it’s up to us to be key players in making it happen.

Here are the X’s and O’s for the hurry-up:

  • More financing options increasing your chances of scoring.
  • A pricing strategy calibrated to a dealer-favorable call.
  • Lower price and discount fee and a fresh approach to credit underwriting.
  • Flexibility on financing terms and increased dealer participation.
  • Most application responses received within seconds of submission reducing wait times.

“We are pleased to see great interest rates and exceptional customer service offered by SC to our customers with an A-plus credit rating, fast approval and funding process,” added Birol Karan, dealer principal at South Miami Mitsubishi. “We are lucky to have a business partner that accommodates not only the sub-prime but also the prime lending as well.”

Of course, luck is what happens when preparation meets opportunity.

“Santander is in it for the long haul,” said Elizabeth Guichardo, SC Dealer Relationship Manager in Miami, FL. “We are here as a full-spectrum lender to help our dealer partners finance all of their customers’ needs. By giving us an opportunity on every click, my dealers are seeing that numbers don’t lie and are sending us prime deals as well.”

“Our job is to help our dealers get their deals funded,” said one SC regional sales manager recently. “Putting more cars on the road is what we’re there for.”

“We simply offer an option to our dealers that they may be missing out on if they didn’t submit their apps to us,” said another SC player. “We’re providing another opportunity to make more deals happen.”

Even if you don’t choose SC for a particular play, at least you have that choice.

Leaving us on the sideline is not a good call.

How to change the odds in your favor against application fraud

When the numbers just don’t add up …

It could be an honest mistake or a misunderstanding.

Or it could be fraud, specifically, application misrepresentation, according to a dealer brochure developed by the Enterprise Fraud Management team at Santander Consumer USA.

A good time to figure that out is when the customer applying for financing is sitting right in front of you.

091818 IL What you need to know about fraud risk – and why you should care_V4“Only about 15 percent of auto loan fraud is identity theft,” wrote a fraud strategist from PointPredictive consulting firm. “So if your only fraud control is checking a driver’s license or Social Security card, then you are really only addressing a small fraction of the risk.”

The risk with every auto finance application also includes:

  • Income fraud in which a borrower lies about his/her income.
  • Employment fraud in which the borrower lies about employment, work history or job title.
  • Document fraud in which a borrower falsifies pay stubs to substantiate income claims.

RELATED

What you need to know about fraud risk – and why you should care

Identity fraud can take ‘enormous toll’ on your dealership profits

And the more finance applications your dealership submits, the greater your chances of falling victim – unless you take (or have taken) steps to change the odds in your favor, of course.

SC’s Driving a New Model | A dealer guide to recognizing the warning signs of fraud, identifying suspicious buyers and taking action to reduce costs suggests what to look for and how to reduce application misrepresentation risk at your dealership:

The Red Flags

  • Income inconsistent with local salary rate.
  • Business revenue inconsistent with personal or self-employed income.
  • Income that seems inappropriate for the applicant’s age or the employer.
  • Non-existent employer, unfamiliar employer name or no longer employed.
  • Address is a P.O. box, drop box or mail forwarding address.

“It’s quite common for employment information to be fabricated during the auto-lending process,” cautioned the PointPredictive consultant.

And the Checklist

  • Pay attention to buyer behavior, such as nervousness or indirectness in answering questions.
  • Pay attention to application details by comparing application information to the credit bureau report – do the trade lines seem appropriate with the applicant’s stated income and position?
  • Ask for income verification via pay stubs – make sure they’re genuine – or other documentation. Call employer phone number and contact references.

“Santander Consumer USA (SC) is committed to working with dealers to raise awareness of fraud … in the retail auto space,” says the company. “[And] watching for red flags is the most cost-effective way of preventing fraud and reducing expenses related to fraud, reputation, regulatory and financial risks.”

This series, Driving a New Model, is aimed at helping dealers spot the red flags for identity fraud, application misrepresentation, straw buyers and elder abuse, and includes actionable checklists.

Identity fraud can take ‘enormous toll’ on your dealership profits

There’s not much question that identity fraud is an important issue for businesses, including automotive dealerships.

Last year alone, nearly 10,000 reports of identity fraud related to auto financing and leasing were compiled by the Federal Trade Commission, or one for every 3.7 dealerships in the United States, and a 43 percent increase over the previous year.

But with odds of only one in four, why should you worry about identity fraud?

091818 IL What you need to know about fraud risk – and why you should care_V4“You should be concerned with fraud because of the hit your profits can take,” wrote Frank McKenna of PointPredictive consulting firm in a recent Digital Dealer Magazine report. “Car dealerships that have had a problem with fraud in the past report that it can take an enormous toll on their profits.”

McKenna wrote that it can take the profit of 10 good loans to recover the cost of one fraudulent loan. Although that figure could be even higher based on average cost data – around $25,000 per vehicle – from the U.S. Bureau of Economic Analysis and average gross profit data – ranging from $2,000 to $2,500 – from the National Automobile Dealers Association (NADA).

RELATED

What you need to know about fraud risk – and why you should care

And the more finance applications your dealership submits, the greater your chances of falling victim – unless you take (or have taken) steps to change the odds in your favor, of course.

Santander Consumer USA’s Driving a New Model | A dealer guide to recognizing the warning signs of fraud, identifying suspicious buyers and taking action to reduce costs suggests what to look for and how to reduce identity fraud risk at your dealership:

The Red Flags

  • Consumer or service member alerts on credit report.
  • Social Security number (SSN) issued within the last five years.
  • Recently opened trade lines, thin file or credit history, and a high number of inquiries in the recent past with no new accounts opened.
  • Applicant is listed as an Authorized User – Not the Primary Account holder on multiple accounts. Fewer than 3 primary accounts.
  • Discrepancies and/or inconsistencies between a credit application and credit bureau report.

And the Checklist

  • Examine and thoroughly review government identification for any suspicious conditions – tilted font lines or evidence of physical damage on a driver’s license or state ID, for example – and match the SSN to first and last name on the driver’s license or state ID.
  • Match government identification to details on the credit bureau report.
  • Ask dynamic, knowledge-based questions about specific trade lines from the credit bureau, such as “Who financed your last vehicle?” and “What is the payment amount?” This may help us confirm we are speaking to the actual applicant.
  • Compare the customer personal attributes to the credit bureau report – does the age seem appropriate to the person with whom you are speaking, for example.

“Santander Consumer USA (SC) is committed to working with dealers to raise awareness of fraud and elder-abuse risks in the retail auto space,” says the brochure, Driving a New Model, which was created by SC’s fraud management group. “[And] watching for red flags is the most cost-effective way of preventing fraud and reducing expenses related to fraud, reputation, regulatory and financial risks.”

This series, Driving a New Model, is aimed at helping dealers spot the red flags for identity fraud, application misrepresentation, straw buyers and elder abuse, and includes actionable checklists.

What you need to know about fraud risk – and why you should care

It goes without saying (almost) that an auto lender such as Santander Consumer USA (SC) would be concerned about the threat from fraud.

Most auto dealers also would agree that it poses a risk to their businesses.

But few would suggest that fraud is as easy to identify and deal with as it is to acknowledge.

So why should you care if your dealership hasn’t had a problem? You’ve heard the old saying that “past performance is no guarantee of future results.” Well …

091818 IL What you need to know about fraud risk – and why you should care_V4

“The number of identity theft, fraud and elder-abuse complaints … has increased significantly, resulting in a push at all levels of government to regulate more closely auto lenders and dealers,” says an SC-produced brochure, Driving a New Model | A dealer guide to recognizing the warning signs of fraud, identifying suspicious buyers and taking action to reduce costs.

“Here in the U.S., fraud is on the rise in a big way,” wrote Frank McKenna of PointPredictive consulting firm in a separate Digital Dealer Magazine report 5 Reasons Car Dealers Should Be Concerned with Fraud. “Massive data breaches, like the Equifax breach, have given criminal fraudsters access to more information to defraud consumers and businesses. That is why we can expect more fraud perpetrated and more losses incurred than any other point in history.”

McKenna reported that “fraudulent applications could exceed $6 billion” this year, with one in every 200 applications containing information that could lead to a problem with the loan after funding.

Driving a New Model was produced to help dealers identify and take action against this threat.

“Awareness of fraud and elder-abuse red flags will allow you to take steps to reduce these risks and will result in a number of benefits,” according to the SC pamphlet.

Driving a New Model suggests those benefits could comprise:

  • Improvement in the overall customer experience
  • Reduction in consumer harm and risk to the dealer’s reputation
  • Reduction in credit stipulations on an application
  • Reduction in funding delays to dealership
  • Reduction in post-funding disputes and potential unwinds

Our upcoming series, Driving a New Model, will help dealers spot the red flags for identity fraud, application misrepresentation, straw buyers and elder abuse, and includes actionable checklists.

“Establishing a partnership with lenders is the best way to fight fraud,” wrote McKenna. “Since lenders have more tools to diagnose and detect fraud, they can help you understand the impact to you before it ever happens. Good collaboration on fraud is the key to winning the war on fraud.”