Indirect subprime lender Southern Auto Finance Co. is gearing up to roll out a next-day funding tool that hinges on the ability to verify customer information internally for dealer partners, Chief Executive George Fussell said. With the tool, slated to launch “in the next few months,” Safco aims to verify “stips” — consumer information like proof of income or residence — upfront, he said.
“Dealers these days are able to sell a car to somebody sitting on their iPad in their pajamas at home,” Fussell said. “Subprime has a lot of obstacles in that process. Dealers will probably not want a car delivered [to] a subprime [customer] unless they can absolutely guarantee payment the next morning, and we’re looking to address that.”
Fort Lauderdale, Fla.-based Safco is developing technology to validate customer information, like bank account and payroll statements. “Getting the deal approved is one hurdle for dealers, another often even larger hurdle is getting it funded,” Fussell said. “This process would allow a dealer to deliver a vehicle today and be funded tomorrow.”
So far, the development process has been long, tedious, and expensive, he said, adding that once completed, the tool will still require dealer adoption.