Nissan Motor Acceptance Corp. plans to lean “more aggressively” this year on subprime partners Santander Consumer USA and Exeter Finance Corp. in an effort to reduce delinquencies while bolstering sales, President Kevin Cullum told Auto Finance News.
“If a customer application comes in from our dealer that doesn’t fit our customer profile, we automatically pass that on to Santander or Exeter,” Cullum said.
If the consumer buys a Nissan vehicle and finances it with one of NMAC’s partners, the captive aims to “keep that communication line open” and treat those borrower as if they were NMAC customers, Cullum said. The goal is to help consumers rebuild their credit to get them into NMAC’s prime lending program, Cullum added.
NMAC’s delinquencies 30 to 59 days past due increased to 1.81% for the six months ended Sept. 30, 2017, up from 1.55% the same time a year prior, according to a Moody’s Investors Service pre-sale report.
“Getting our hands around rising delinquencies and getting that under control [was] a significant challenge [last year],” Cullum said. “Now, I do not see that as a big challenge in 2018, because we have made tremendous strides in focusing not only on enhanced collection activity, but really focusing on quality growth in the portfolio. That will all pay tremendous dividends in 2018.”Like This Post