Automobile Paper
Attention Automobile Dealers!
The No Hassle Sub-Prime Financing Alternative
- Chuck it all!
Do this instead. 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.
- We do NOT pull credit on the customer.
- We do NOT verify customer job status or history.
- Our only considerations are:
- The value of the vehicle vs the loan balance.
- The loan balance
- The remaining term of the loan
- The pay history
- To maximize your pay price, do the following:
- Keep the gross balance under $6,000; lower balances yield higher cents/dollar prices.
- Keep the term less than 30 months; lower terms yield higher pay prices.
- Make sure the NADA left side trade in value of the vehicle, including adds and deducts for mileage is at least 45% of the gross balance, higher averages yield higher prices.
- Keep track of your records on a spreadsheet in our approved format.
Let’s look at the math. Consider an average purchase. On average, the car was purchased for $3,000 and sold for $6,000 with $1,000 down, $5,000 financed at 25% over 24 months with a payment of $266.86 per month. After 3 monthly payments to the dealer, the net balance on the loan is $4501.69 which is sold for $.75/$ or $3,376.27. Multiply this times the number of cars in the pool. The dealer’s Nominal Annual Return is over 190% and the Effective Annual Return over 484%!
You can repeat this every month. There is no maximum on pool size. In fact, larger pool gets better cents-on-the-dollar pricing. Any loans that are not bought in a particular month can be resubmitted the next month.
If you are an automobile dealer and need to liquidate some automobile loans or just need some cash, please e-mail or call us today toll free at (800) 845-3055 to find out how we can help you.
The Advantage To Using Armstrong Capital
Are you considering "selling" to a company with Reserve and Recourse? If the company has Reserve and Recourse, are you really selling anything? No. They are advancing you money against your receivables. It’s called a loan. If you would rather borrow against your receivables, you would do much better pledging them at your local bank. The rates will be much better. But, if you want to sell your receivables, consider the following:
When you SELL to us:
- WE pay the same or more than our competitors do and we pay it all up front.
- We actually buy your loans and the RISK that goes with them.
- You will never get a Demand Notice from us for late or defaulted loans like you will from you-know-who.
When you deal with a Reserve/Recourse company:
- You are not selling your pool; you actually getting a loan.
- Most dealers are responsible for the full, complete and timely payment for every one of your customers for the life of every loan. This responsibility could last 2 or 3 years.
- Your reserve will be docked for every late payment and every default.
- You will receive Demand Notices to pay if your reserve has been used up.
- You are taking a huge risk on the gamble that you will get a small portion of your reserve.
- What is their incentive to make vigorous collections if you are on the hook?
- You have an excellent chance of getting a Demand Notice for payment that might be $10,000 or $20,000 or $100,000: how big is the pool? It’s called RISK.
- If your reserve is 20%, even they will tell you that you they will "burn" at least half of it. If they tell you half, how much do you think you are really going to "burn?"
- They are not buying your loans; they are selling you money with no risk to them.
- Sell to them and you are gambling that you can beat the house at it’s own game.
If you are an automobile dealer and need to liquidate some automobile loans or just need some cash, please e-mail or call us today toll free at (800) 845-3055 to find out how we can help you.
CONTACT US TODAY FOR A FREE ANALYSIS !
Armstrong Capital
Post Office Box 6517
Westlake Village, CA 91359-6517
Toll Free: 800-845-3055
Phone: 818-865-2322
Fax: 818-865-2323
Click here to e-mail us now!
