Western Funding Inc. extended its Triple Pay Program with the launch of a “10-10-10 Program,” the company announced yesterday.
“The ’10-10-10 Program’ stands for vehicles a maximum of 10 year old, with a maximum of $10,000 amount financed (before add-on products) and a minimum of 100,000 miles,” according to company press release.
The original Triple Pay Program was created to help manage “ancillary problems” that can arise between lender and dealer. Through the program, the dealer receives a check when a deal is funded, another check after 50 loans have been made and placed into a pool, and a third at the end of the term of the pool of deals, Guerin Senter, president of Western Funding, told Auto Finance News previously.
“The dealer gets more money if the contracts perform,” he said. “So the dealer figures out pretty quickly, ‘Don’t send Western Funding the deals where you don’t think the borrower’s going to make it.’”
The new extension will help dealers fill their Triple Pay buckets “even faster and increase the speed at which they may receive their second and third participation check by financing quality older vehicles with higher mileage,” according to the release.
“Dealers now have a greater opportunity to reach their residual income at a much faster pace than before,” Senter said. “We think that paying the dealers quicker is great for our long-term relationships.”
