Where do we go to get “Joe Plummer” funded?
- With credit scores trending downward, traditional banks tightening up their approval thresholds, where do we go to get “Joe Plummer” funded for his RV without resorting to a blood bank?
Joe would have been tier 1 two years ago, tier 2 last year and today he’s a TD with his 650 FICO, which had been 720 in not so many months ago.
This market requires F&I managers to look to local lenders to fund the loans. You will need to create the relationships with the local credit unions, and local banks, thrift and loans offices. Opportunities are in the market place, they simply are not knocking on your door. You must get up and go out and discover them yourself.
You are also not going to be in a position to object to the rates the lenders are charging. If you want to make the deals, your reserve income will be lower than previous years. All that means is that you will need to sell more ancillary products and services.
Many dealership are looking for the magic solution for this lending crisis. The magic is this customer must have down payment. Lenders want equity, and they do not care if the customer is “Joe the Plumber, or ?”
The question I have for dealers today is are you seeing some of the things these dealers are? Do your salespeople balk at asking for a down payment or is this something they do with every customer?
RV Trade Digest Blog October 2008