DEALERSTRONGGreg GoebelPresident and CEO

Who’s Who Among Special Finance

Companies?

Session OverviewWhich companies dealers are using most often

Recap of each credit tier

Averages vs. Benchmarks

Source of our data

Recap of the finance companies performance in each tier

Data Sampling

Cooperative effort - DealerStrong and ProMax Unlimited

Merged transactional deal data beginning May 2014.

Nearly 2.25M transactions from over 800 dealers who report sales data tied to credit scores.

Data Sampling

Data was scrubbed many times to validate each transaction.

Averages and benchmark deal characteristics for each credit tier developed (including near-prime and prime).

Identify the most frequently and profitably financed vehicles.

DealerStrong’s National Credit Tiers

681+ 680 - 621

620 - 576

575-521

520 - 476

475 - 100 0

Prime Near Prime Tier 1 Tier 2 Tier 3 Tier 4 No

Score

Special Finance

Relationship of Sales Among Special Finance Tiers

Jun-14

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

SF Tier 1SF Tier 2SF Tier 3SF Tier 4Tier Zero

Prime 681+• Most creditworthy

customers• Lowest interest rates.

Very extended terms• New vehicle buyers –

average 755 credit score

New* Used

% of Category 62.7% 34.3%Score 771 755

Sales Price $32,578 $20,419 Miles 303 48,436

Amount Financed $29,782 $20,602

Total Down Pmnt $5,640 $2,400 Payment $446 $347 Term 61 68

Veh. Gross Profit $1,355 $2,487

Total F&I Gross $1,553 $1,604

Total Gross Profit $2,908 $4,091

Near Prime 621 – 680• Some finance companies

say they “act like prime buyers, except when it comes time to pay.”• Decent to good credit. • High D-T-I ratios.• Highest average Total

Deal Gross Profits

New* Used

% of Category 18.4% 20.1%Score 653 651

Sales Price $29,283 $17,683Miles 153 55,199

Amount Financed $30,344 $19,142

Total Down Pmnt $2,098 $1,721 Payment $492 $364Term 66 68

Veh. Gross Profit $1,203 $2,499

Total F&I Gross $2,256 $1,721

Total Gross Profit $3,459 $4,220

SF Tier 1:620 – 576• Cream of the ‘crap’.• Deeper credit file.• Good residence and job

time.• Good income.

No major derogatory credit.• Fees: $0 - $200• Req. Cash Down: $0

New* Used

% of Category 8.3% 14.2%Score 600 599

Sales Price $26,405 $16,291Miles 131 55,394

Amount Financed $27,609 $17,318

Total Down Pmnt $2,086 $1,187Payment $502 $378Term 68 67

Veh. Gross Profit $1,538 $2,417

Total F&I Gross $2,030 $1,478

Total Gross Profit $3,112 $3,895

SF Tier 2:575 – 521• Traditional subprime buyer.• Stable employment & income.• Higher loan-to-value ratio.• Worse P-T-I ratio.• Decent car credit.• Stable in area & at job.• Fees: $95 - $400• Req. Cash Down:

$0 - $500

New* Used

% of Category 5.6% 13.1%Score 552 550

Sales Price $24,230 $15,425Miles 194 57,152

Amount Financed $24,427 $16,142

Total Down Pmnt $2,681 $1,292Payment $476 $383Term 68 66

Veh. Gross Profit $937 $2,355

Total F&I Gross $1,799 $1,211

Total Gross Profit $2,735 $3,566

SF Tier 2 Finance Companies

Finance Company

% of Tier

CB Avg.

Cash Down.

Sale Price. FE Pft. F&I GP Total Pft

Avg Miles Term. Paym.

Capital One 9.7% 552 $1,653 $16,371 $1,136 $1,544 $2,680 36,404 70 $397

GMF/Americredit 7.3% 553 $1,483 $21,808 $634 $1,253 $1,887 14,223 69 $420

Ally Financial 5.8% 552 $1,323 $17,485 $1,527 $1,625 $3,152 35,047 70 $384

Regional Acc 5.7% 547 $717 $16,208 $1,440 $1,137 $2,577 30,380 70 $425

Santander 5.5% 548 $1,452 $14,229 $387 $1,237 $1,624 36,799 70 $370

Credit Union 5.3% 550 $1,311 $14,832 $1,857 $1,062 $2,919 56,573 64 $332

Credit Accept. 5.3% 548 $1,646 $13,568 $1,272 $448 $1,721 62,941 62 $400

CPS 4.3% 548 $1,086 $16,204 $1,586 $859 $2,445 37,151 69 $412Wells Fargo Dealer Services 3.5% 552 $1,636 $17,976 $1,239 $1,350 $2,589 45,644 70 $375

Finance Company Gross Profits

Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 $500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

COAF Santander Ally Wells CAC Exeter CPS Chase

SF Tier 3:520 – 476• Tier where you earn your

keep.• Shorter job time, gaps. • Verifiable but lower income.• Some good credit – more

derog.• Likely prior repo or

foreclosure.• L-T-Vs 90% - 105%• P-T-I 12% - 15%• Fees: $500 - $1,000• Req. Cash Down: $1,000

New* Used

% of Category 1.8% 6.2%Score 501 501

Sales Price $22,930 $14,877Miles 175 59,873

Amount Financed $22,747 $15,463

Total Down Pmnt $2,317 $934Payment $463 $387Term 69 64

Veh. Gross Profit $1,034 $2,385

Total F&I Gross $1,645 $1,043

Total Gross Profit $2,679 $3,428

SF Tier 3 Finance CompaniesFinance

Company % of Tier

CB Avg.

Cash Down.

Sale Price. FE Pft. F&I GP Total Pft

Avg Miles Term. Paym.

Credit Accept. 9.5% 498 $1,786 $13,102 $1,425 $416 $1,841 65,204 60 $391

Capital One 8.6% 504 $1,618 $15,967 $1,207 $1,320 $2,527 41,076 69 $393

CPS 7.8% 498 $1,344 $15,969 $1,285 $831 $2,116 41,246 68 $408Credit Union 6.3% 500 $1,389 $15,376 $2,031 $839 $2,870 66,860 60 $348

Ally Financial 6.3% 503 $1,436 $18,219 $1,572 $1,587 $3,159 39,703 67 $398Santander 5.6% 503 $2,620 $16,612 $898 $1,199 $2,098 40,197 70 $393

GMF/Americredit 5.4% 505 $1,495 $21,740 $1,072 $1,212 $2,284 27,246 69 $453

Regional Accept 5.0% 505 $1,001 $16,372 $1,707 $1,023 $2,730 34,516 69 $443

Prestige Finc. 4.7% 501 $689 $15,491 $1,778 $748 $2,526 48,921 70 $395Wells Fargo Dealer Services 4.0% 505 $1,909 $16,455 $1,526 $1,032 $2,559 57,035 66 $365

SF Tier 4:475 – 100• BIG difference New vs Used• New: huge payments• Used: BHPH “on steroids”• High D-T-I and P-T-I ratios.• Short job time, gaps &

hard to prove income. • Many exceptions (DL, stubs,

repos)• Fees: $1,500 - $3,000• Req. Cash Down: $1,500 -

$3,000

New* Used

% of Category .5% 2.7%Score 501 501

Sales Price $22,854 $13,604Miles 67 68,783

Amount Financed $22,404 $13,938

Total Down Pmnt $2,317 $934Payment $459 $367Term 70 61

Veh. Gross Profit $876 $2,222

Total F&I Gross $1,760 $724

Total Gross Profit $2,637 $2,945

SF Tier 4 Finance Companies

Finance Company

% of Tier

CB Avg.

Cash Down.

Sale Price. FE Pft. F&I GP Total Pft

Avg Miles Term. Paym.

CPS 11.7% 455 $1,472 $15,788 $2,052 $736 $2,788 42,369 68 $397

Credit Accept. 9.6% 453 $1,993 $12,032 $1,228 $466 $1,694 72,992 58 $363

Santander 8.1% 447 $3,333 $16,236 $325 $1,224 $1,549 43,701 69 $396Regional Accept. 7.2% 456 $703 $16,151 $964 $1,415 $2,379 32,489 68 $453

Prestige Finc. 6.6% 449 $1,073 $14,981 $1,596 $744 $2,341 44,184 68 $396Gateway Finc. 5.5% 454 $720 $10,378 $1,374 $118 $1,492 118,275 57 $298

Capital One 5.1% 455 $1,073 $17,715 $884 $1,675 $2,558 39,830 69 $451

Credit Union 4.7% 450 $1,320 $13,395 $1,892 $781 $2,674 78,618 55 $288

Ally Financial 4.5% 458 $1,525 $17,658 $1,627 $1,450 $3,077 39504 69 $334

No Credit Score• Can be credit “ghost” or

credit criminal• Affordability (P-T-I)

w/shorter term is key.• Significant equity• In some states, non-

documented aliens. • Tier grew by 20%+ in 2015!• Fees: 10% - $2,500• Req. Cash Down:

Used: Minimum 10%

New* Used

% of Category 2.7% 9.4%Score No Score No Score

Sales Price $23,674 $13,788Miles 71 63,784

Amount Financed $21,653 $14,070

Total Down Pmnt $2,317 $934Payment $459 $367Term 63 63

Veh. Gross Profit $915 $2,222

Total F&I Gross $1,760 $724

Total Gross Profit $2,474 $3,495

No Score Finance CompaniesFinance

Company % of Tier

CB Avg.

Cash Down.

Sale Price. FE Pft. F&I GP Total Pft

Avg Miles Term. Paym.

Credit Union 8.9% $1,746 $13,274 $1,603 $1,284 $2,887 54,248 63 $285

Santander 7.2% $1,607 $14,907 $(170) $1,487 $1,317 26,809 70 $375

Credit Accept. 7.2% $1,510 $11,591 $1,471 $547 $2,018 75,844 59 $347Ally Financial 5.8% $1,269 $15,389 $1,539 $1,346 $2,886 39,547 70 $321Wells Fargo Dealer Services 5.4% $1,620 $13,618 $1,579 $985 $2,564 56,736 66 $283Capital One 4.9% $1,385 $15,729 $1,377 $1,513 $2,890 39,969 70 $363

CPS 4.8% $1,490 $15,615 $1,795 $781 $2,576 45,554 67 $385

Regional Accept 3.7% $833 $14,762 $1,227 $1,184 $2,411 29,624 70 $391

Ford Motor Credit 2.7% $2,086 $23,453 $1,075 $974 $2,049 10,144 49 310

Exeter Finance 2.5% $1,863 $15,465 $609 $683 $1,291 38,172 69 $406

Open Chapter 7 Finance Companies

Finance Company

% of Tier*

CB Avg.

Cash Down.

Sale Price. FE Pft. F&I GP Total Pft

Avg Miles Term. Paym.

CPS 37.1% 482 $1,416 $15,697 $1,641 $808 $2,449 39,434 69 $396

Prestige Finc. 23.5% 486 $671 $14,971 $1,669 $727 $2,397 47,333 69 $391

Credit Accept. 8.8% 482 $1,850 $12,968 $1,392 $428 $1,819 63,573 61 $385Tidewater 4.9% 475 $82 $17,778 $2,003 $628 $2,631 32,706 70 $453United Auto Credit 4.8% 472 $1,981 $13,109 $743 $0 $743 142,429 39 441First Investors 3.9% 444 $1,800 $18,209 $351 $1,877 $2,228 32,948 72 417

*% of Niche Tier

Just Missing the CutFinance

Company % of Tier

CB Avg.

Cash Down.

Sale Price. FE Pft. F&I GP Total Pft

Avg Miles Term. Paym.

New Vehicles

JP Morgan Chase 3.3% 364 $4,526 $25,652 $(76) $2,191 $2,115 144 68 $466

Exeter Finance 2.4% 406 $1,214 $24,415 $(593) $755 $161 6 72 $578

Flagship 2.3% 461 $1,209 $21,773 $94 $1,682 $1,776 24 72 $482Used Vehicles

Flagship Credit 2.2% 432 $1,224 $14,635 $1,310 $1,798 $3,108 40,613 71 $383

Exeter Finance 2.2% 345 $1,720 $15,247 $1,019 $678 $1,696 41,534 69 $405Gateway Finc. 2.1% 322 $788 $10,957 $1,676 $188 $1,864 107,172 58 $314

JP Morgan Chase 4.8% 381 $1,656 $16,012 $1,162 $1,014 $2,176 68,450 62 $373

Skopos Finc. 1.3% 325 $1,657 $14,661 $777 $547 $1,324 48,048 70 377

Westlake Finc. 1.3% 203 $2,519 $13,123 $759 $730 $1,490 75,853 51 401

Thank You.

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