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Buying Bulk Auto Notes from Dealers

Auto dealers can increase sales with more traffic from buyers quickly especially when there are people interested. There are more demands on sales and this ultimately leads to more cash. There are many companies that provide dealers where you can buy bulk auto notes however it is important to know about their offerings and being careful not to be drawn into a scam.

You want to be dealing with a company that will make the transaction fluid and easy as well as profitable. They also need to be willing and ready to work with finance companies that will make the dealership complete and legit, such as credit unions. There are many dealers that are competitive in the marketplace and their main aim is to sell cars and gain an income for their business.

The advantages for dealers is that they are able to obtain a steady income of cash flow within the dealership and also have the capital to progress and increase inventory almost straight away, which in turn increase their bulk sales. Another benefit is that they will reduce capital exposure on debt that is outstanding and can repay any debts after accumulating the sufficient funds. The reduction of having to service overhead costs by selling auto loans in bulk will also make a big difference to the dealerships.

The number of customers you sell cars to will increase over time as there is more inventory to sell cars. The need for bank loans and SBA loans will not be required and you are able to focus more on selling the cars, rather than collecting payments. This in turn will make the dealer a profitable auto dealer fast and provide them with a healthy income.

The dealership of cars will need to carry out correctly and compliantly, such as gathering the required portfolio and documents to build a customer profile of purchase. The accounts must be aged at 90 days at the maximum and this excludes pick up payments and must have a term remaining term of 36 months or less. Customers should also provide their contact details as well as providing information on employment and verifying.

The required documentation is important to obtain especially if the dealer does not use a DMS system (Dealer Management System). Usually you will need to obtain a copy of the customer’s credit application, copy of bill of sale and buyer’s order, a copy of retail installation of sales contract and payment history.

There are a number of processes to determine the best dealer and finance company. There are usually trained professionals that will conduct market research and then make a decision based on the information obtained. There is also surveying to potential clients to assess options with the companies to effectively benefit needs. Qualified clients will also request an electronic data file that contains all important documents relevant to data fields on the accounts. The DMS system will be used as a result to obtain the data. The steps that follow are usually to finalize and have a system in place that works for all parties involved.

Will the Future Be Full of Electric Vehicles?

electric cars

Imagine this…you are driving down the road with your windows open, and all you hear are tires rolling over the roads. There are no engine noises, no backfires, no revving, just silence. And red lights provide a moment of instant quiet with only the sound of music or talk shows filling the air. How incredible would that be? It would be like what I imagined the future to be like (although hover cars and jet packs also sound awesome).

The thought is that we have this technology that can power cars on nothing but electricity, think Tesla, which can literally save the planet. But will it ever become a reality? Is that the future of travel, cars that use nothing but plug into the wall?

How do we Transition to All Electric?
Firstly, we need to have the means to charge the vehicles like we do to get gas, and can even be accessible at current gas stations. But the cars themselves, and the charging stations, also need to have the ability to give a full charge in a shorter amount of time than they have now, because if you are on a road trip, unless it’s a designated stop, you don’t want to wait around for hours to charge the car before you can leave again.

Benefits of Switching to All Electric
Of course advising them that electric is better, you’ll have to prove it and get consumers to switch. If we stopped using gas powered cars and instead all electric, we would see over a 40 percent decrease in CO2 emissions. We’re talking a decrease in greenhouse gasses by more than 75 percent. That’s a lot.

And switching to electric will also push the envelope on electric companies to utilize more renewable energy such as wind, water, and solar. The more consumers push for it, the more the big companies will do because their job is also based solely on demand. Even with regards to the charging stations, the more demand there is for them, the more that will be built.

Jobs, jobs, and more jobs, because in order to build the charging stations, you need workers, more cars, you need more workers etc. Plus then all other sectors for renewable energy will get a boost, which means again, a stimulated economy.

Will it be a reality? It’s unclear, but that seems to be the way the world is going. Uber uses electric cars in their self driving fleet, and Tesla is a company that makes only electric cars. Everyone is stepping up to the plate to save the one planet we have. Really, there is no redo button for saving the world. Electric cars could be the first answer to a major crisis. The final hurdle they will have to deal with is price. Once the cars become affordable, the more people will buy them. Until then, a totally electric car is still out of reach financially for many people.

Should I Buy or Sell My Auto Notes?

buy-sell-auto-notes

Regardless of the level of hope you are in…thinking that the economy will magically turn around, one must consider the reality as it stands.  If you’re the owner of a Buy Here Pay Here lot, selling auto notes to investors maybe the bright light you’re looking for.

We know you’ve certainly heard the term: Cash Is King.  Easily said, many people want to access anything that will make them feel secure.  They want to access cash to create a feeling of immediate safety.  That’s a normal reaction to what this country is presently experiencing.  And we haven’t the slightest inclination as to what the future will bring. People want to pay off loans that they have. Car lot owners are no different. To sell auto notes, could be easier than you think.

In general, people are adamant about cleaning up their excessive credit card debt and eliminating long term medical bills. Like most adults, they would like to have cash to use, for a down payment, on a new home. Let’s face it, everyone needs cash…the question is, how does one go about getting it?

Would you like The Truth or the Truth?
How about we just give you the absolute Truth? Plan and simple…having cash will give you peace of mind.
You won’t be constantly thinking about collection problems or major financial upsets.
At Dealer Capital we can tell you how you can create great results. We are trained to produce impeccable results – right now!

Looking to Sell or Buy Auto Notes?

sell-bulk-auto-notes

If you’re a buy here/pay here auto dealer and you’re looking to sell auto notes, look to Dealer Capital for the fastest and most aggressive quote on your paper.

Dealer Capital offers all of its prospective clients the ability to cash in on their auto notes with quick and responsive offers from all types of buyers.  Whether your have auto notes with small values up to portfolios with multi million dollar values, Dealer Capital will provide you with a timely, accurate quote.

Buy here/pay here dealers use auto note buyers to free up cash flow to properly run their lots.  Use the cash to pay off debts or simply liquidate your portfolio for cash on hand.  Forget about having to service your loans on a monthly basis.  Selling your auto notes to investors and banks will not only put cash in your hand, but it will free up time for you to focus on daily business activities.

Some benefits of selling auto notes:

-Cash in hand in as little as 1 week

-Free up operations time

-Small portfolios to larger portfolios- We’re happy to review and make you an offer!

-Pre Approval in minutes & approval in days.

For an offer on your bulk notes and paper, contact Dealer Capital today!

Free Up Time and Resources with Auto Note Sales

sell-my-auto-notes

Just like everything else in the world today, timing is everything, even when selling your auto notes.  By selling your auto notes you gain to liquidate cash for your business.  If you’re an auto lot or buy here pay here dealer, this means being able to have cash on hand to purchase new inventory or aliviates the stress that comes with servicing loans.

With the recession still lingering, credit is still in short supply as well is cash.  When you have access to private investors or banks willing to write a check for your auto notes, you should listen a little closer.  The sale of you notes can mean the difference in keeping your lot open, or closing its doors.

The longer term benefits to selling auto notes is the high return.  Taking away the time it takes to manage and collect on monthly bills, while adding the funding amount to your cash flow, you are making a sound investment.

The proper auto note buyer will be able to lead you down the path of highest profit and easy financing.  They should be able to educate you along the way and provide sound business advice.  Ensure that the auto note buyer or broker you are dealing with is reputable and can provide plenty of information throughout the process.

Dealer Capital Provides Dealers with Much Needed Cash

If you operate a buy-here/pay-here dealership and have a portfolio for sale or you’re looking to sell auto notes, Dealer Capital can definitely help.

Dealer Capital has access to hundreds of national banks and private money institutions that are just waiting to make you an offer. Dealer Capital and their employees are 100% dedicated to those that are looking to sell auto notes.

With their experience and dedication to the marketplace, Dealer Captial will ensure a timely and highly professional transaction, giving you the influx of capital so many small car lots are needing these days.

You may need or want capital if:

You’re in a growth stage or looking to grow your busines.
You’re Fully focused on SELLING cars and not interested in tracking payments.
You’re looking to eliminate 3rd party collection agencies.

If one of these scenarios describes your situation, you’re a prime candidate for liquidating your portfolio and Dealer Capital will assist in the auto notes for sale.

If you have any questions, or you’re looking to entertain an offer on your portfolio, give Dealer Capital a call today.  

How to turn your loans into cash!

If you’re looking to get a lump sum of cash injected into your auto sales or financing business, selling your auto loans in bulk may be the answer.  Selling loans in bulk is the alternative to holding on to the note and collecting small monthly payments.

Look to an auto loan buyer or buyer of auto notes for information and quotes.  An experienced note purchaser or broker should be able to gather some information from you and appraise your bulk auto notes in only a few days.

Liquidating your notes can create plenty of opportunities for a small to medium buy here pay here lot.  Most lots use in house financing to get potential car buyer with sub par credit into the vehichles.  The time it takes to bill, collect and maintain this financing can be overwhelming for some small lot owners.  Auto paper or note purchasers can make you an offer on your notes and have cash in your hand in less than a week.

Most note purchasers offer competitive rates for performing notes and also offer additional services to buy here pay here lots to help them operate a more efficient business.

Some of the additional services may include:

Bankruptcy Purchases
Dealership Credit Lines
Skip Purchasing
GPS and Starter Interrupt Devices

As Credit Tightens…Auto Lots Get Creative

One of the hardest issues these days for buy here pay here lot owners is finding access to working capital or credit lines.  With more and more car owners and home owners defaulting on their loans, banks are now tightening up their credit and taking a harder look at credit the credit risk of both the dealer and the car owner.

Although the SBA has rolled out some new initiatives to help car lot owners, that cash has yet to have a good impact on sales.  Private institutions and private lending are taking a chance by offering credit lines to buy here pay here lots.  Rates can vary based on credit and some other factors.  Aside from the dealers selling auto notes or finding people to purchase auto notes from them, this seemed like a positive for lots.

Additionally, the initiative had a major flaw. Although more auto dealers became eligible for the SBA’s loan programs, the SBA does not cover “floor plan” loans, the main kind of financing used by auto dealers. A typical floor plan loan is a revolving used car lot credit line that a dealership uses to purchase vehicles. As the cars and trucks sell, the dealership pays down the loan.

Alternative Financing for Auto Lots: Credit Lines and Auto Note Sales

The used car lot model of Buy here pay here has been in existance for over 50 years.  The model goes like this: the car lot itself offers its own inhouse financing as an alternative to traditional bank lenders.  Typically, their consumer is a buyer with either no credit at all, or less than satisfactory credit that prevents banks from lending to them.

The biggest issues that Buy Here Pay Here dealers face is access to capital or credit lines.  Outlined below are two popular ways for car lots to leverage their credit to access capital to expand or issue new loans.

Credit Lines:  With access to secured loans and rolling credit lines, buy here pay here lots now have the ability to expand their car offerings or feel more comfortable extending credit to a new car buyer.  Fees can be relatively low, from 2% on smaller lines and going up from there for larger credit lines for car lots or advances.

Sell Auto Notes:  Typically, Buy Here Pay Here lots are working with their own capital, or a small investment from an outside source.  Lack of capital limits what you’re able to do, whether it’s lend or access new cars.  Lot owners now have the ability to sell auto notes to investors or banks.  This is a common practice to generate an influx of cash or limit the lot owners liabilities.

When running a Buy Here Pay Here lot it’s important to keep you financing options open.  Limiting your options to access cash can leave your lot at a car deficit or a cash deficit.

Traditional Car Lots VS Buy Here/ Pay Here

Let’s explore some alternative financing for buying and selling used cars.

What is a Buy Here Pay Here used car lot?

Buy here pay here dealers typically make financing available to their customers via in house funds.  Arrangments are made through the dealer and payments are made directly to the dealership or through a servicing company.  As opposed to making regularly scheduled payments to a bank or loan company, you’ll make weekly or bi-weekly payments to the dealer.  Usually these dealership only accept cash or check, knowing that the reason the customer is using this type of dealership is due to the fact that they already have less than stellar credit.  It’s possible to see interest rates in the double digits at some of these lots.

Typically, these lots often collect, process and manage payments, which can be a bit of a headache.  They’re in the business of selling cars, not banking.  Often these dealerships look to creative ways to turn their auto notes into cash by selling auto notes to a buyer.  There are plenty of buyers of auto notes spread across the country.  Many offer the dealerships the opportunity to turn the loans into cash, which is paid directly to the dealer at closing.

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