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Collateral management system helps dealers and lenders can protect their assets

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Subprime Auto Lenders ‘Exercising More Caution’

At the tail end of the economic downturn, many subprime auto lenders began lowering the qualifications needed to finance a vehicle. The reason was simple—less red tape meant more customers, and more customers meant more profits. While there are still plenty of automobile options out there for people with poor credit, lenders have begun exercising more caution when it comes to taking on high-risk customers.

According to Moody’s vice president-senior analyst, Peter McNally, “Declining competition from non-traditional subprime lenders puts less pressure on independent finance companies to lend to weaker borrowers to maintain their lending volumes. If lenders maintain this caution, loan losses among newer loans could stabilize.” While extending less credit to high-risk customers may lower liability for lenders, it also cuts into profits.

A better option may be to invest in a GPS collateral management system. Solutions such as Spireon’s GoldStar GPS and LoanPlus CMS have proven time and time again that they are an effective weapon against late payments and vehicle repossessions. Unlike other systems, GoldStar GPS and LoanPlus CSM are highly accessible, and can easily adapt to your needs. The system itself is completely customizable, and can mirror your processes and workflow to maximize effectiveness. It’s also incredibly affordable and simple to use. Because many of the most powerful tools are available online, the software is simple, intuitive and accessible to even the most novice users.

With its online integration, automotive dealers and lenders are able to conveniently manage assets, and communicate with customers. Borrowers can easily access their accounts, find loan information, and make their payments on time -- all from their home computer, tablet, or cell phone.

With the right collateral management system, dealers and lenders can protect their interests while still pursuing new avenues for growth.

Learn more about Spireon’s GoldStar GPS solutions for automotive dealers and LoanPlus CMS solution for lenders

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Recent Bloggers

  • Corinna Tutor
    VP, Integrated Marketing
  • David Meyer
    Executive Vice President, Sales & Services Automotive Solutions
    Spireon, Inc.
  • Neil Fisher
    Vice President of Field Sales, ASG
    Spireon, Inc.