Managing Risk During This Time of Uncertainty

By James Vien - December 1, 2021

The subprime auto industry is facing historic highs and lows with managing its financial risk factors during the COVID-19 pandemic. The consumer loan landscape has been hit especially hard during this time with so many jobs being furloughed over the past year, or worse yet, eliminated. This has forced many dealers, finance companies and banks to redefine what risk looks like when funding their deals. Additionally, demand in the subprime auto industry is surging to historic highs presenting opportunities galore. These elements are making the landscape very tricky to navigate even for the most seasoned dealer.

Dealers and lenders cannot afford anything less than real time data and hyper accurate risk profiles when evaluating what types of deals to work with their customer. Indeed, even defining what the typical customer can afford safely these days has proven to be a challenge. A deal that may seem safe and sound today may, unfortunately, be a repo tomorrow. How does a dealer take the risk out of a deal? Does credit still predict how someone will repay a loan over the course of the term? There are now so many questions to ask during this time of uncertainty that can make all the difference.

Thankfully with Deal Pack’s versatility and robustness, a dealer’s life is made easier. Deal Pack’s many integrations answers those “risky questions” before making that call to fund a deal or not. Features such as 700Credit, AutoZoom, customizable scoring models within the system’s built in credit application, ultra-customizable cyclCRM, and its built-in risk calculators that can be fine-tuned with proven risk predictors help to take the uncertainty out of getting customers into vehicles.

Deal Pack paints a realistic picture of the customer that dealers can feel confident about before selling a vehicle without the fear of taking a loss in the future. While no program is ever full proof with predicting the future; Deal Pack comes closest with its vast array of tools to keep the subprime auto business moving in the right direction.

For additional information on Deal Pack or if you would like to request a demo, please contact Customer Support at (800) 526-5832 or email us at support@abcoa.com.

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