Greg Goebel, President and CEO of DealerStrong, discusses which finance companies dealers are using the most often and their performance in each tier.

1. Who’s Who Among Special
Finance Companies
DEALERSTRONG
Greg Goebel, CEO
What Companies Are Buying Which Customers?

2. Session Overview
• Annual review of which companies dealers are using most
often with credit tiers – significantly different in last 2Q.
• Recap of each credit tier
• Likely different in every dealership, even within same
organization
• Customer/deal characteristics of each “national” credit tier
• Breakdown of where the business falls nationally
• Averages vs. Benchmarks
• Source of our data
• Recap of the finance companies performance in each tier

3. 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 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.

4. Defining Greg Goebel’s National
Credit Tiers
• Prime 681+
• Near Prime 680 - 621
• Tier 1 620 - 576
• Tier 2 575 – 521
• Tier 3 520 - 476
• Tier 4 475 - 100
• Tier Zero 0
Special
Finance

5. Relationship of Sales Among
Special Finance Tiers
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
SF Tier 1 SF Tier 2 SF Tier 3 SF Tier 4 Tier Zero

6. Prime 681+ Credit Scores
• Most creditworthy customers
• Credit score of 681 and above
• Lowest interest rates. Very extended terms
• New vehicle buyers – average 755 credit score
• New vehicle gross profits exclude $915 in dealer incentives.

7. Near Prime 621 – 680 Credit Scores
• Some finance companies say they “act like prime
buyers, except when it comes time to pay.”
• Decent to good credit.
• High debt to income ratios.
• Highest average Total Deal Gross Profits
• New car vehicle gross profit excludes $915 average dealer incentive.
Vehicle
Type
% of All
Deals
Avg
Score
Avg Sales
Price Avg Miles
Amount
Financed
Total Down
Pmnt Pmnt
Avg.
Term
Veh. Gross
Profit
Total F&I
Gross Pft
Bchmark
Deal Profit
New 17.2% 653 $28,318 112 $29,426 $ 2,098 $ 479 66 $ 1,303 $ 2,167 $ 3,470
Used 20.5% 651 $17,427 57,520 $18,834 $ 1,195 $ 358 68 $ 2,480 $ 1,660 $ 4,140

8. SF Tier 1: 620 – 576 Credit Scores
• Cream of the ‘crap’.
• Deeper credit file.
• Good residence and job time. Fees: $0 - $200
• Good income. Req. Cash Down: $0
• No major derogatory credit.
• New car vehicle gross profit excludes $915 average dealer incentive.
Vehicle
Type
% of All
Deals
Avg
Score
Avg Sales
Price
Avg
Miles Amt Fin
Down
Pmt
Average
Payment
Avg.
Term
Veh.
Gross
Profit
F&I
Gross Pft
Bchmark
Deal
Profit
New 7.9% 600 $25,882 150 $27,112 $ 2,086 $ 500 69 $ 1,233 $ 2,652 $ 3,085
Used 13.5% 598 $16,177 57,277 $17,229 $ 1,187 $ 381 67 $ 2,298 $ 1,407 $ 3,704

9. SF Tier 2: 575 – 526 Credit Scores
• Traditional subprime buyer.
• Stable employment & income. Fees: $95 - $400
• Higher loan-to-value ratio. Req. Cash Down: $0 - $500
• Worse payment-to-income ratio.
• Decent car credit. Stable in area & at job.
• New car vehicle gross profit excludes $915 average dealer incentive.
Vehicle
Type
% of All
Deals
Avg
Score
Avg Sales
Price
Avg
Miles Amt Fin
Down
Pmt
Average
Payment
Avg.
Term
Veh.
Gross
Profit
F&I
Gross Pft
Bchmark
Deal
Profit
New 5.5% 552 $24,210 180 $24,806 $ 2,681 $ 452 69 $ 1,098 $ 1,795 $ 2,893
Used 12.8% 550 $15,689 52,779 $16,772 $ 1,292 $ 381 66 $ 2,193 $ 1,171 $ 3,364

10. SF Tier 2 Leaders
Tier 2
% of
Tier
Avg
of CB
Sale
Price Veh. GP F&I GP Total GP Avg MilesTerm Paym
Santander Auto
Finance 12.4% 551 16,488 659 1,288 1,947 41,004 70 424
Capital One 11.3% 552 16,943 903 1,422 2,325 38,848 70 407
Ally Financial 10.8% 553 19,701 1,213 1,938 3,151 32,972 70 417
GMF/Americredit 9.4% 552 20,261 906 1,084 1,989 27,920 69 411
Regional
Acceptance 7.5% 549 16,601 1,155 916 2,070 31,359 69 445
Wells Fargo Dealer
Services 7.3% 550 17,833 1,521 1,214 2,735 53,172 66 368
Credit Unions 6.2% 555 15,265 1,375 1,221 2,596 62,596 64 346
CPS 5.1% 547 15,845 1,497 751 2,248 47,548 67 406
Credit Acceptance 4.9% 549 10,989 1,407 381 1,787 94,248 55 347

11. SF Tier 3 525 – 476 Credit Scores
• Tier where you earn your keep.
• Shorter job time, gaps. Verifiable but lower income.
• Fees: $500 - $1000 Required cash down: $1000+
• Some good credit – more derog. Likely prior repo or
foreclosure. LTVs 90% - 105% P-T-I 12% - 15%
• New car vehicle gross profit excludes $915 average dealer incentive.
Vehicle Type
% of All
Deals
Avg
Score
Avg Sales
Price Avg Miles
Amount
Financed
Total Down
Pmnt Pmnt
Avg.
Term
Veh. Gross
Profit
Total F&I
Gross Pft
Bchmark
Deal Profit
New 1.6% 502 $23,563 86 $23,836 $ 2,317 $ 472 71 $ 1,174 $ 1,434 $ 2,608
Used 5.3% 501 $14,622 62,725 $15,345 $ 934 $ 393 64 $ 2,157 $ 1,037 $ 3,194

12. SF Tier 3 Leaders
Tier 2
% of
Tier
Avg
of CB
Sale
Price
Veh.
GP
F&I
GP
Total
GP
Avg
Miles Term Paym
Santander Auto Finance 13.0% 500 16,518 541 1,309 1,851 43,371 69 418
CPS 10.4% 498 16,681 1,479 749 2,228 43,649 67 422
Regional Acceptance 10.0% 501 17,037 1,111 851 1,962 33,339 68 453
Capital One 8.2% 502 17,707 891 1,196 2,087 33,913 69 424
Wells Fargo 7.5% 505 15,556 1,425 889 2,314 59,272 64 349
GMF/Americredit 7.3% 503 20,912 1,209 1,009 2,219 25,750 70 433
Credit Union 6.8% 502 14,293 1,785 703 2,488 70,513 59 314
Credit Acceptance 6.6% 503 11,573 1,683 305 1,988 95,629 54 371
Prestige Financial 6.1% 500 15,815 1,726 958 2,684 42,647 69 426
Ally Financial 5.1% 503 17,968 1,238 1,939 3,177 35,031 69 408

13. SF Tier 4: 475 – 300 Credit Scores
• BIG difference New vs Used
• New: huge payments Fees: $1500 - $3000
• Used: BHPH “on steroids” (often shared risk)
• High D-T-I and P-T-I ratios. Req. Cash Down: $1500 - $3000
• Short job time, gaps &
hard to prove income. *Many exceptions (DL, stubs, repos)
• New car vehicle gross profit excludes $915 average dealer incentive.
Vehicle
Type
% of All
Deals
Avg
Score
Avg Sales
Price
Avg
Miles Amt Fin
Down
Pmt
Average
Payment
Avg.
Term
Veh.
Gross
Profit
F&I
Gross Pft
Bchmark
Deal
Profit
New 0.4% 458 $24,321 105 $23,258 $ 3,934 $ 504 70 $ 1,048 $ 994 $ 2,042
Used 2.2% 453 $14,266 65,105 $14,917 $ 1,221 $ 387 62 $ 2,030 $ 933 $ 2,962

14. SF Tier 4 Leaders
Tier 2
% of
Tier
Avg
of CB Sale Price Veh. GP F&I GP
Total
GP
Avg
Miles Term Paym
CPS 13.3% 453 16,915 1,449 886 2,336 44,701 68 430
Credit Acceptance 12.7% 448 13,500 1,327 359 1,687 78,595 57 396
Santander Auto
Finance 12.4% 456 17,730 836 1,139 1,975 45,142 69 459
Prestige Financial 11.5% 452 15,536 1,898 973 2,871 41,284 68 414
Regional Acceptance 10.0% 452 16,225 1,212 1,208 2,420 33,943 67 452
Credit Union 5.5% 462 13,049 1,459 686 2,144 80,766 56 324
Gateway Financial 4.8% 453 10,040 801 119 919 109,731 57 307

15. Special Finance Zero Credit Scores
• Can be credit “ghost” or credit criminal
• Affordability (PTI) w/shorter Fees: 10% - $2500
term is key. Req. Cash Down: 10% - $3000
• Significant equity
• In some states, non-documented aliens. Tier grew by 20%+ in 2015!
• New car vehicle gross profit excludes $915 average dealer incentive.
Vehicle
Type
% of All
Deals
Avg
Score
Avg Sales
Price
Avg
Miles Amt Fin
Down
Pmt
Average
Payment
Avg.
Term
Veh.
Gross
Profit
F&I
Gross Pft
Bchmark
Deal
Profit
New 2.9% 0 $22,917 41 $21,820 $ 4,485 $ 451 67 $ 946 $ 1,565 $ 2,511
Used 8.7% 0 $13,701 64,840 $14,213 $ 1,584 $ 338 64 $ 2,182 $ 1,028 $ 3,210

16. SF Tier Zero Leaders
No Score
% of
Tier
Avg.
of CB SalePrice Veh. GP F&I GP Total GP
Avg
Miles Term Paym
Santander Auto Finance 19.5% 0 15,877 364 1,438 1,802 38,310 70 423
Credit Union 16.6% 0 14,967 1,325 1,281 2,606 63,258 63 307
Wells Fargo Dealer
Services 8.4% 0 14,908 1,384 942 2,325 57,513 65 312
Credit Acceptance 7.8% 0 11,978 1,379 300 1,679 93,199 56 371
Capital One 7.2% 0 15,333 1,246 1,418 2,664 41,600 68 367
Ally Financial 5.8% 0 16,857 1,688 1,661 3,349 43,654 67 329
Regional Acceptance 5.6% 0 15,211 1,043 897 1,941 35,886 67 416

17. Open Chapter 7 Bankruptcy
Company
Pct of
Niche Sale Price
Avg.
Mileage
Total
Down FE Pft.
Total
F&I Pft
Total
Pft. Term Pmnt
CPS 49.7% $17,541 49,084 $1,241 $2,836 $ 818 $3,654 67 $449
Prestige Financial 30.3% $16,605 40,957 $ 674 $2,492 $1,100 $3,592 69 $437
Tidewater 7.1% $17,790 34,026 $ 555 $2,301 $1,167 $3,467 69 $451
United Auto Credit 5.4% $11,379 115,876 $1,190 $3,959 $ 115 $4,075 45 $394
American Credit
Acceptance 2.4% $13,589 96,548 $1,791 $2,508 $ 437 $2,946 53 $389

18. Thank You. 
For More Information:
 Visit http://www.dealerstrong.com/
 Call our office @ 877-811-8107