Western Funding Doubled Dealer Base, President Says
November 3rd, 2015
Western Funding Inc. doubled its dealer base to 2,000 dealers, after it signed about 1,100 new dealer partners year to date, according to
Guerin Senter, president of the Las Vegas-based nonprime auto lender.
“The dealer is my direct customer, especially in the nonprime track,” Senter said. “So a great relationship between the finance company and
the dealer is really great for everyone.” When considering dealer partners, Western Funding looks at metrics to predict loan performance,
Senter said while speaking at the Auto Finance Summit 2015.
The performance of indirect auto loans originated through a dealer who has been in business at least two to five years is more consistent
than a dealer who has been in operation a year or less, he said.
The lender also looks at early delinquencies and how the dealer has structured the loan for the consumer as well, according to Senter.
He said the lender keeps an eye on metrics like, “matching the timing of their first payment,” or “aligning the first payment
with the borrower’s payment cycle. We really try to ensure that the borrower is set up for success.”
To align goals between and lender and dealer, Western Funding created the "Triple Pay program" in which the dealer
receives a check when a deal is funded, another check shortly after 50 loans have been made and placed into a pool and a third
toward the end of the term of the pool of deals, Senter explained.
“The dealer gets more money if the contracts perform,” he said. “So the dealer figures out pretty quickly, send Western Funding
the deals where you think the contracts are going to make it.”