It’s All About Your Network

In the car sales business, success hinges on relationships—not just with your customers but also with your network of industry professionals. Your network, particularly your lenders, can make or break your dealership. Let’s dive into why this matters and how to build a lender network that sets you up for success.

When selling cars, you have three primary options: cash sales, in-house financing, or traditional bank retail financing. Early in my career, I struggled to understand the importance of a lender network. I didn’t come from a big-name dealership background, but through determination and a bit of grace, I learned a critical lesson: you need a lender for every type of customer to maximize approvals and close deals.

Before diving in, let’s cover a key term: STIPs (short for stipulations). STIPs are the documents lenders require to approve a financing deal. Typically, these include:

•  Identification: A driver’s license, state ID, or passport.

•  Proof of Residence (POR): A utility bill or similar document in the customer’s name, showing their current address and dated within the last 30 days.

•  Proof of Income: A recent pay stub showing year-to-date earnings. Alternatively, some lenders accept a TurboPass, which verifies income through the customer’s bank account.

Additionally, most lenders require full coverage insurance on the vehicle before finalizing the deal. This protects both you and the lender in case of accidents or damage, ensuring the loan is secure. Always confirm your customer has full coverage in place to avoid delays.

Now, let’s talk lenders.

Why Your Lenders Matter

Even if you have the best inventory, it’s worthless without a way to sell it. In today’s economy, many buyers can’t pay cash, making financing essential. A robust network of lenders who support both subprime (bad credit) and prime (good credit) customers is crucial. Below, I’ll share the lenders I rely on daily and how they can help your dealership thrive.

1. United Auto Credit

United Auto Credit is a go-to for subprime customers. Depending on your Dealer Management Software (DMS), you can submit deals through DealerCenter or United’s Fastlane portal. They’re ideal for buyers with lower credit scores, especially those with solid down payments.

I once had a customer with a 486 credit score who wanted a 2020 Jeep Wrangler. With a $6,000 down payment, United Auto Credit approved him seamlessly, and the deal was signed, sealed, and delivered. They finance rebuilt-title vehicles, trucks, first-time buyers, and those without Social Security or ITIN numbers. In my experience, they love trucks—Chevy Silverados, GMC Sierras, and Ford F-150s tend to score well.

Pro Tip: United has a 30-day recourse policy. If a customer defaults on their first payment, you must buy back the loan. Set up auto-pay for your customers to avoid this headache.

2. Westlake Financial and Western Funding

Westlake Financial and Western Funding are integrated into DealerCenter, making them easy to use. They cater to a wide range of clients, including first-time buyers, those without Social Security or ITIN numbers, and subprime customers. In the early days of your dealership, Westlake often offers the highest approval rates. They buy aggressively and are a popular choice among dealers.

3. Lobel Financial

Lobel Financial focuses on clean-title vehicles with under 150,000 miles and no older than 10 years. They allow you to choose your own vehicle service contract through a third-party warranty company, which can boost profits. While they don’t offer their own warranty, they provide gap insurance, which increases your net check.

Lobel finances up to 64 months but typically allows only one open auto loan per customer. Always verify this before submitting a deal.

4. Credit Acceptance

Credit Acceptance is a leader in deep subprime financing but is also expanding into prime credit customers (650+ credit scores). Their program offers flexibility, allowing multiple open auto loans as long as they’re not financed with Credit Acceptance. You can add gap insurance and warranties, but they must be provided by Credit Acceptance—no third-party vendors.

Their unique “pool” program is a game-changer. Every 50 cars sold closes a pool, and your dealership receives a residual check based on the pool’s performance. Free money is always good money!

5. Consumer Portfolio Services (CPS)

CPS is a fantastic addition to your lender network. Their non-recourse program means you’re not on the hook if a customer defaults. They also let you choose the highest valuation from Kelley Blue Book, J.D. Power, or Black Book, which is a huge advantage since each scores vehicles differently.

CPS typically finances clean-trade value times 115%—the max most lenders will pay, regardless of a car’s condition. They don’t finance rebuilt or salvage titles and generally allow only one open auto loan per customer, though exceptions can be made based on income and credit.

6.LendBuzz

LendBuzz is a newer player in the lending game, and they’re shaking things up with an AI-driven platform. They’re a great fit for first-time buyers, especially those without Social Security numbers, as they’ve carved out a specific market for these customers. They focus on newer-model cars and trucks but won’t touch salvage or rebuilt titles. If you’re looking to expand your lender network with a modern, tech-savvy option, LendBuzz is worth checking out.

Backend Products: Boosting Profits and Customer Confidence

If you’re like me and didn’t grow up in a big-name dealership, wrapping your head around traditional bank financing can feel like climbing a mountain. But lenders are only half the equation. To maximize profits and give your customers peace of mind, you need solid backend products like vehicle service contracts (VSCs) and gap insurance. These not only pad your bottom line but also reassure buyers their car is protected. Let’s face it—mechanical breakdowns scare people. Everyone’s been burned by a bad repair bill, and no one wants to feel like they’re buying a risky vehicle. Here are the companies I rely on to keep customers happy and deals profitable.

Peak Performance (Dealer Warranty Company)

Peak Performance offers competitively priced vehicle service contracts that work with any of the lenders I mentioned earlier. Their plans are affordable, easy to bundle, and simple to explain to customers. They also provide gap insurance, which you can pair with their VSCs to sweeten the deal and protect buyers from owing money if their car is totaled. Their straightforward program makes it a no-brainer for any dealership.

Cars Protection Plus

Cars Protection Plus is a standout because they offer plans for nearly every make, model, and year—even vehicles that other warranty companies might reject. Most VSC providers won’t touch cars with over 200,000 miles or diesel trucks, but Cars Protection Plus has you covered for both. Their backend products, including gap insurance, are a lifesaver for dealers selling high-mileage or diesel vehicles. If you’re looking for flexibility and reliability, I highly recommend signing up with them.

Endurance

Endurance leans toward comprehensive, bumper-to-bumper coverage, but it comes with a higher price tag. Depending on your customer base and the vehicles you sell, you’ll either love or hate them. For buyers who want top-tier protection and are willing to pay for it, Endurance is a great option. Just be strategic about when you offer their plans to keep your deals profitable.

Pro Tip

When selling backend products, focus on how they benefit the customer—peace of mind, protection from unexpected repairs, and financial security. Pair that with a strong lender network and clear STIPs (ID, proof of residence, proof of income, and full coverage insurance), and you’ll close more deals with happier customers. What backend products do you use? Share your go-to’s in the comments!

Final Thoughts

Building a strong lender network is the backbone of a successful car dealership. By partnering with lenders like United Auto Credit, Westlake Financial, Lobel Financial, Credit Acceptance, and CPS, you’ll be equipped to serve a diverse customer base and close more deals. Start cultivating these relationships today, and watch your business grow.