Training Manager
EFG Companies
According to the NADA Used Car Guide, more than 3 million vehicles will reach the end of their leases in 2016. This represents a 35 percent jump in off-lease volume. With such a huge increase in reliable, late-model, pre-owned vehicles, the industry has already seen used vehicle prices drop to become more competitive. Now, dealers are more concerned with maintaining front-end profitability while still being competitive.
Meanwhile, lenders are dealing with their own competitive struggle. Many are watching the auto finance market closely to determine when to tighten lending requirements. Some are already beginning to pull out of the subprime space. And, all lenders are determining how to remain competitive while also being compliant with the Consumer Financial Protection Bureau.
Outside of rates, one of the best ways to remain competitive in the auto finance space is by helping dealers accomplish their profitability and competitive goals. With a higher pre-owned inventory, more dealers are looking to utilize certified pre-owned (CPO) programs to differentiate their offerings and increase front-end profitability.