In announcing TCF Bank’s exit last week from the auto sector, CEO Craig Dahl said subsidiary Gateway One Lending & Finance “performed as expected” under the new direction set earlier in the year.
Yet, data from the 2017 Auto Finance Performance initiative paint a picture of a lender whose representatives were falling short of dealer expectations and whose pricing structure had declined year over year.
The Auto Finance Performance (AFP) data query and research service provides data on lender performance to determine which auto financiers are performing best. Dealers grade the three prime and three nonprime or subprime lenders with which they work most regularly on Pricing, Service, Representatives, and Products.
Gateway One’s overall performance score dropped to 7.40 out of 10, from 7.79 last year. The average AFP score across all lenders was 7.65.
Gateway One’s Reps score fell 43 basis points to 7.93. The biggest drag in the category related to reps’ willingness to help get deals done. In that area, dealers scored the Anaheim, Calif.-based lender 7.80, down from 8.52 last year. Gateway One’s scores declined for the remaining Reps category elements: accessibility, knowledge, and ability to act in a consultative manner.
Within the AFP’s Service category, Gateway One notched the biggest year-over-year decline – to 6.68 from 7.62 – for self-service options. Specifically, dealers were seeking an online portal to streamline aspects of the lending process.
As for pricing, advances, buy rate competitiveness, and reserve fees generated the largest year-over-year declines in Gateway One’s AFP scores.
On the flip side, Gateway One posted notable improvement for its loyalty program and co-marketing opportunities. Those items are elements of the Products portion of the AFP.
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