apologies in advance Idk if this is like reddit where you can post in multiple different sub forums or only one
I have for the entirety of my career been on the corporate side of this industry. Very straight and narrow clock in, do exactly what management wants, and clock out. Pay is good but creativity is sparse. In a way I envy the freedom a salesman has, as the one rule is sell the car. In my recent years I have started to branch out, taking on side projects much like what I do for work but at an independent dealer level. My work has ranged from website building and building a backend for inventory to loan lending portfolio analysis. I am exploring the relationship that independent dealers have with auto lenders, and that auto lenders have with warehouse banks, to see if this is an area where I can niche down on and do my own thing. Correct me where I am wrong and tell me off if I sound crazy.
Independent dealers use auto lenders for these reasons:
Auto lender / independent dealer relationship:
My question:
Can I position myself as a consultant for:
I have the skills six years' worth. I just want to know if this is a market I can grow in, or if you have any corrections to my understanding, please offer them.
My sample is here : getbookiq.com
I have for the entirety of my career been on the corporate side of this industry. Very straight and narrow clock in, do exactly what management wants, and clock out. Pay is good but creativity is sparse. In a way I envy the freedom a salesman has, as the one rule is sell the car. In my recent years I have started to branch out, taking on side projects much like what I do for work but at an independent dealer level. My work has ranged from website building and building a backend for inventory to loan lending portfolio analysis. I am exploring the relationship that independent dealers have with auto lenders, and that auto lenders have with warehouse banks, to see if this is an area where I can niche down on and do my own thing. Correct me where I am wrong and tell me off if I sound crazy.
Independent dealers use auto lenders for these reasons:
- To help their customers finance vehicles, especially true in subprime dealerships, think BHPH.
- They sell the car, finance the car, but then sell the loan paper to the auto lender so the cash flow is much faster for them. To do this you must be trusted and well documented. The collapse of Tricolor made people wary.
- Seen much more in subprime dealers, but auto lenders buy a dealership outright and own all their loans.
Auto lender / independent dealer relationship:
- When they buy these loans let's say loans worth $1M they do not have $1M, so they open a warehouse bank credit line and use that to buy the loan paper from the dealers. However, these warehouse banks are very involved.
- If the auto lender is dealing with poor reputation dealerships or has a messy loan portfolio, they will either pull their funding or not extend a line. Again, Tricolor's collapse made them tighten up and raise expectations, hence why auto lenders keep moving the goalposts.
My question:
Can I position myself as a consultant for:
- Independent dealerships, help them manage their data and create detailed reports so auto lenders maintain relations with them.
- Show detailed reports of loan performance so that where independent dealerships might sell a loan tape for 70 cents on the dollar, I can get them 80–85 cents.
- Work with auto lenders and manage their loan portfolio for their warehouse credit line again creating detailed reports of each individual dealership's performance in their loan book so these warehouse banks are motivated to keep the credit line open.
I have the skills six years' worth. I just want to know if this is a market I can grow in, or if you have any corrections to my understanding, please offer them.
My sample is here : getbookiq.com
