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Dealer Discounts

Auto Finance NewsbyAuto Finance News
April 16, 2009
in Archives
Reading Time: 1 min read
0

I would be interested to know how other lenders are accounting for Dealer Discounts. Earned monthly as a balance sheet liability or funding loss reserves for specific static pools? Additionally, any discussion regarding the pros and cons of either method. If a company chooses to fund loss reserves, would’nt GAP allow the discounts to be earned in the same fashion. If so, it seems the preference would be the latter so as to avoid having discounts sitting on the balance sheet.

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