Our Industry is about to change DRAMATICALLY………Are you ready? The CFPB affects auto finance profitability. F&I Coach can help your dealership continue to make money.
Founded in 2011, the Consumer Finance Protection Bureau (CFPB) handles questions and complaints about lending institutions. On March 21, the CFPB announced that lenders offering auto loans through dealerships will be held accountable for illegally marking up pricing based on discrimination.
The agency claims potentially discriminatory markups in auto lending may result in tens of millions of dollars in consumer harm each year. The CFPB recommends that Indirect Auto Lenders impose controls on dealer markup, revise dealer markup policies or eliminate dealer discretion to markup buy rates.
Since the CFPB was founded, they claim to have helped over 5 million consumers. Their purpose is to protect consumers and the economy by helping prevent risky loans. They have put policies in place to make sure that loans are fair and transparent. They have also created specific programs to protect elderly Americans, the military and their families, ensuring them equal access to credit.
What does that mean for you? The popular notion is that lenders will compensate dealers on a flat fee per transaction model. The question is, what kind of impact will that have on your F&I Office? Can you follow the new guidelines and still generate the levels of income you need to be profitable?
Here at F&I Coach, our program is designed to rely on product sales to drive your profit in the F&I Office. Finance reserve is a small part of the income opportunity.
Call us for a Free Dealership Performance Analysis.