Replies to This Discussion

Permalink Reply by Elise Negrin on October 12, 2008 at 8:54pm

I grew up on recourse lending for small independent dealers. Those dealers that worked the program for the long run did very well and so did the lender. Its a gigantic cooperative effort between lender and dealer. It doesnt work for most dealers now because they refuse the responsibility but if auto dealers want to stay alive in this economy, they may have to take some responsibility for finding qualified buyers, pricing the car properly, verifying information and getting the correct down payments so the lender will be interested. DEALER GREED has taken over in past years; the main reason for the decline of recourse financing.

Permalink Reply by Marcie Belles on October 16, 2008 at 1:01pm

I have a hunch we will begin to see more dealer-lender cooperation in the next few months. Both parties are facing severe problems related to the current credit crunch, and I think the only way to keep the auto finance market humming along (at least somewhat) is for dealers and lenders to work together to get customers into vehicles.