Drive Revenue Growth

Transform Your Dealership into a Finance Powerhouse

Are you a car dealership owner or executive seeking innovative ways to boost revenue without making operational changes or committing to large infrastructure expenses?

Let’s explore a lucrative opportunity to enhance your dealership’s profitability by adding your own non-prime captive finance company into the dealership structure. This strategic approach can open new revenue streams, strengthen connections with non-prime customers and achieve higher overall profitability. Plus, the best part is how effortlessly you can initiate and seamlessly integrate financing into your business model.

The Need for Revenue Growth

In today’s competitive market, car dealerships must find new avenues for revenue growth to stay ahead. Traditional revenue sources often rely solely on car sales, which can be inconsistent and subject to marketplace fluctuations. Creating new revenue growth is crucial to building your business to achieve stability and incremental growth.

The Concept of Becoming a Finance Company

Becoming your own captive finance company means offering financing directly to customers from your dealership. This approach allows dealerships to capture the financial benefits that typically flow to banks and other third-party lenders. This creates the potential for any dealership to control its customer financing more effectively. And when the dealership owns the finance company, the dealership realizes the additional profits.

The Benefits of Financing In-House

Instead of allowing profits to flow to external financial institutions, keeping financing in-house allows money to remain in the dealership, bolstering its profitability. By offering financing solutions directly, you can keep customers within your dealership’s ecosystem, leading to increased repeat business and customer loyalty.

Learn from Industry Leaders

Successful integration of sales and financing efforts is essential to transforming your dealership into a non-prime captive finance company. Learn from industry leaders who have blazed this trail and discover how integrating sales and financing can lead to a more seamless and satisfying customer experience and higher profits.

Achieving Success without Costly Acquisitions or Expenses

Adding a finance company to the dealership mix does not require costly acquisitions or investments in new staffing or technology. There are insights into a cost-effective approach. For example, by leveraging advanced Artificial Intelligence (AI) and Machine Learning (ML), you can evolve into making data-driven financing decisions, ensuring highly predictable portfolio performance even in volatile market conditions.

Swiftly Establish Your Non-Prime Captive Finance Company

Establishing your non-prime captive finance company doesn’t have to disrupt your daily operations. Learn how to leverage your dealership’s existing strengths and utilize a proven framework that’s ready to go. Discover strategies for transitioning smoothly into your own captive finance company without negatively impacting your dealership’s operations.

Leveraging Your Dealership’s Existing Strengths

Your dealership already possesses valuable assets and resources that can be leveraged for successful finance company operations. Take advantage of existing frameworks and solutions that enable your non-prime finance company’s swift and efficient establishment while also ensuring regulatory compliance.

Benefits of Becoming Your Own Finance Company

Becoming your own finance company offers multiple benefits that can significantly impact your dealership’s profitability, stability, and future growth. These include:

  • Diversified Revenue Streams: Explore the potential for incremental revenue by understanding the lifetime cash flow of loans.
  • Expanding Customer Reach: By serving non-prime customers, you can access a previously untapped market segment, expanding your customer base.
  • Doubling Profitability: Visualize the dual profit streams from car sales and financing, highlighting the financial advantages of this additional profit source.
  • Control over Cash Flow: Gain greater control over your dealership’s cash flow, leading to improved financial stability.

Seamless Integration

You can seamlessly integrate financing into your existing dealership management systems (DMS) and loan origination systems (LOS) using platforms like DealerTrack and RouteOne. Additionally, discover strategies for managing defaults and mitigating personal liability, including the benefits of non-recourse financing.

This article illuminates the transformative potential of turning your dealership into a financial powerhouse. You can boost your dealership’s profitability, resilience, and growth by seizing the opportunity to build a non-prime auto portfolio and collecting residuals from future cash flows. There are only a few resources that can empower your dealership to become a finance company, enabling you to finance more non-prime customers, sell more cars, and increase profitability. Don’t miss the chance to transform your dealership into a finance powerhouse and secure your financial future.

To read the featured article from Used Car Dealer Magazine, click here.

About Agora Data, Inc.

Agora Data, Inc. is an automotive industry fintech revolutionizing financing for car dealers and finance companies. Car dealerships can secure affordable capital to build their own non-prime captive finance company, obtain actionable loan performance data to improve their lending portfolios, and use a wide range of solutions to grow their business safely. Powered by patent pending artificial intelligence (AI) and machine learning technology, car dealers can access real-time data analytics and planning resources to help optimize the performance of their portfolios. Agora Data made history by closing the first-ever crowdsourced non-prime auto securitization in 2020 and continually brings groundbreaking financing solutions to an underserved market. For more information, visit www.agoradata.com.

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