If the customer has a job and can make the payments, sell them the car. Keep the loan in house for 90 days.
Pool 20 loans or more every month and sell them to us. We’ll pay between $.60 and $.85 cents on the (net) dollar or more.
To maximize your pay price, do the following:
1. Keep the gross balance under $6,000; lower balances yield higher cents/dollar prices.
2. Keep the term less than 36 months; lower terms yield higher pay prices.
3. Make sure the NADA left side trade-in value of the vehicle, including adds and deducts for mileage is at least 50% of the gross balance, higher averages yield higher prices.
4. Keep track of your records on an approved format i.e. Excel spreadsheet. We can email you a labeled one.
Lets Do The Math
Consider an Average Purchase
1. On average, the car was purchased for $3,500 and sold for $6,500 with $1,500 down.
2. $5,000 financed at 22% over 24 months with a payment of $259.39 a month.
3. After 3 Monthly Payments to the dealer, the net balance on the loan is $4487.55
4. Which is sold for $.78 or $3,500.29.
Multiply this times the number of cars in the pool.
1st Sale $6500.00
Down Payment $1500.00
3 Payments $778.32
Sell the Note For $3500.29
You get $5778.61
Cost of Car $3500.00
Three Sales a Year Equals $6835.83 x 2 Years =$13,671.66
Or keep the note and collect your $259.39 payment for two years and make:
259.39 x 24 pmts= $6225.36
Plus Down Pmt= $1500.00
Minus Cost of Car= $3500.00
After two years you make $4225.36 or $9446.30 Less than you could have made with us.
You can repeat this every month. There is no maximum on pool size. Any loans that are not bought in a particular month can be resubmitted the next month.
The above examples are for illustrative purposes only. Actual sales prices and total profit will vary from this example.