Anyone close to dumping CFC?

[MUAlum92]

They're our captive obviously and we floor plan with them, but we're real close to blowing them out. They have been fairly useless in recent months. Anyone else as frustrated with them as we are? My dealer principal is currently looking at other floorplan options it's gotten so bad.

[XDCX]

They're our captive obviously and we floor plan with them, but we're real close to blowing them out. They have been fairly useless in recent months. Anyone else as frustrated with them as we are? My dealer principal is currently looking at other floorplan options it's gotten so bad.

I noticed that you posted in the thread about the 0% Financing on the Ram 1500 Quads so you probably saw my comments regarding the concerns about CFC.

I think you hit the nail on the head when you made reference to CFC's ability to borrow money. The credit markets remain tight and it seems like there is a widespread fear a recession will cause consumers to default.

If you dropped CFC who would you go with? Are there any banks/lenders that are still aggressively buying deals?

[SHACOS]

MUAlum92,

What are your frustrations with them? Are they related around flooring or just buying customer contracts from you?

[MUAlum92]

We've got a couple still buying agressively. It's bad out there, there's no denying it. Everyone is scared, but it's ridiculous with CFC. I'm the bad cop to my finance manager's good cop. I can't get on the phone with them now without losing my temper.

Started a couple months ago when they decided to make up some rule on the fly that incentives didn't decrease LTV. Excuse me??? I've never heard that in my life. Then they wanted to use fleet invoices to value program avengers that we got from Enterprise. I don't care if they were originally fleet vehicles or not, no one has EVER done that to me before.

And now, especially that last ten days to two weeks, they just won't buy unless the customer is bullets.

As for banks that are buying.....we use Community America Credit Union and they will buy deep for us. Nationally, Harris is stepping up and have great rate sales for anyone 680 or above.

[XDCX]

We've got a couple still buying agressively. It's bad out there, there's no denying it. Everyone is scared, but it's ridiculous with CFC. I'm the bad cop to my finance manager's good cop. I can't get on the phone with them now without losing my temper.

Started a couple months ago when they decided to make up some rule on the fly that incentives didn't decrease LTV. Excuse me??? I've never heard that in my life. Then they wanted to use fleet invoices to value program avengers that we got from Enterprise. I don't care if they were originally fleet vehicles or not, no one has EVER done that to me before.

And now, especially that last ten days to two weeks, they just won't buy unless the customer is bullets.

As for banks that are buying.....we use Community America Credit Union and they will buy deep for us. Nationally, Harris is stepping up and have great rate sales for anyone 680 or above.

Great post with great examples.

I started a thread asking about CFC cutting advance a few weeks ago but never got a response. There's nothing worse than changing the rules in the middle of the game - things are confusing enough already.

I'm pleased to hear that you have a Credit Union that buys deep for you. My bet is that the ability to get deals bought and funded will eventually separate which stores stay in business and which ones don't.

[goodone414]

Chrysler is not only out of the lease market, but after my call on a deal yesterday it appears they are almost out of the retail business as well. I had a 712 beacon and current CFC customer on a new 2500 Ram. Chrysler will finance a max 109% of invoice which on this unit is $800 back of MSRP. Customers insurance company/bank approved $3000 over MSRP @ a better APR. It is really scary when your captive finance source runs under the table.

[XDCX]

Chrysler is not only out of the lease market, but after my call on a deal yesterday it appears they are almost out of the retail business as well. I had a 712 beacon and current CFC customer on a new 2500 Ram. Chrysler will finance a max 109% of invoice which on this unit is $800 back of MSRP. Customers insurance company/bank approved $3000 over MSRP @ a better APR. It is really scary when your captive finance source runs under the table.

That's not good news. :(

I've been reading about the problems CFC is having with its $30 Billion Debt Offering - it's been reported that the "risk premium" is four times what it was last year.

I guess that one way of dealing with a smaller pool of funds is to tighten up on loan criteria and watch the business go elsewhere.