Personal Loans

Improving F & I As a Profit Centre

Improving F & I As a Profit Centre

The motor finance landscape is changing; fewer independent finance companies are a part of this change. The long term survival of these companies is vital to the dealer market. Dealers need to work in partnership with the finance companies to ensure mutual profitability and to positively change perceptions of dealer finance.

IMPROVING F & I AS A PROFIT CENTRE

For many former finance companies the return on investment from motor finance had become unsustainable. Competition between the players meant that retailers were able to negotiate aggressively, pushing finance company margins ever lower; the balance of power has now shifted and in reality this is a good thing for the long term future of dealer finance.

Retailers need finance companies to be profitable and encouragingly Carlyle Finance which is reporting record profit levels has now committed itself to achieving significant profitable growth – with plans to more than double it’s lending in the UK motor sector.

But there is unlikely to be any return to the Income per finance case retailers achieved 3 – 4 years ago. Market and regulatory pressures are part of this change, but so is the reality that today’s consumer is better informed in terms of their options and rates when looking to purchase a car on finance. The internet has been a key part of the consumer education process and it is vital that dealers engage in communicating the value of dealer finance through the web in a far more engaging fashion than has been delivered to date.

When it comes to finance, dealers have to ensure that finance information (quality, detailed information) is positioned ‘front and centre’ so that the consumer can learn for themselves the full picture about why dealer finance makes so much sense.

“Retailers can make money from F & I, but things have to change” Mark Standish “To ensure …

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How to Obtain US Real Estate Financing For Foreigners
Personal Loans

How to Obtain US Real Estate Financing For Foreigners

Recently, there has been a fall in real estate financing in the USA. Due to the economic turmoil and banks tightening their requirements, it has become harder to foreigners to obtain a loan.

HOW TO OBTAIN US REAL ESTATE FINANCING FOR FOREIGNERS

In fact, while cash deals have always been the most common way for non residents to purchase US real estate, it increased even more this past year due to the credit crunch in the market. Fortunately, lenders are slowly beginning to relax their requirements in tandem with the slow recovery of the economy.

If you are considering getting a loan for US real estate, here’s what the current process involves.

Amount Financed

Unlike loans offered to US residents, foreign investors are usually only allowed to finance 70%, or less, of a homes value. In addition to a sizeable down payment, interest rates and fees are also generally a little higher.

Property Usage

You’ll get better terms (more competitive rates and lower down payment) if your purchase is to be used as a second home rather than a rental property.

Property Ownership

Typically, banks are more receptive to lending to foreign individuals than to foreign corporations.

Credit Worthiness

Banks rely heavily on your credit history for US Real Estate Financing. Since many investors won’t have any history with US companies, it’s good to have at least 3 creditors from your own country that can provide proof of timely payments. Letters from institutions attesting to your credit worthiness may also be acceptable.

Asset Verification

This may not be required to obtain a loan but it can help you get better rates or less of a down payment. The best asset verification comes from international banking institutions who can verify the amount you have on deposit and the amount of time your account has been active.

Property Chosen

You may …

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