In the last five to six years, lenders have been competing for your business. They’ve loosened credit requirements, extended loan terms, provided software solutions for automatic approvals, and been willing to advance more money for your F&I managers to sell consumer protection products.
With them doing all the work, you’ve been able to pick and choose which lenders with which to do business. That is slowly changing in 2017. According to the latest Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve, auto loan demand at banks is softening while lenders are tightening approval standards.
This means that you now have to put more effort into maintaining your lender relationships as lenders pull back on the amount of auto loans they are willing to fund.
So what does it take to develop strong lender relationships? When pondering this question, think beyond complete and accurate applications. It takes communication and the ability to manage expectations.