Dealer Loans
DEALER LOANS Pay back this loan with future F&I products
Dealer Benefit is proud to offer a loan agreement created exclusively for the automotive retailing industry. Our partnership with Notre Dame Federal Credit Union allows Dealer Benefit the ability to assist automotive dealerships in a new way. Qualified locations will have the ability to borrow money from the Credit Union and repay it back through the dealership’s future F&I product sales. This flexible payback arrangement will allow for the borrower to acquire new locations, buy land, remodel existing showrooms or spend it on what best fits their growth strategy. Reach out us for more information on how to qualify for the loan program.
A loan of $500,000
100 service contracts a month x $200 x 24 months
100 gap policies a month x $50 x 24 months
Interest rate is Prime rate +4%
24 month term
Some requirements for loan approval:
- Contract reserves housed with Mission Management & Trust Co.
- Dealer will personally guarantee loan
- Two years of dealership’s financials
- Two years of F&I Products summary
- Dealer must become a NDFCU member
- Dealer will receive a term life policy for the full amount of the loan
- Dealership will offer Coverage in a Click in service with F&I products
- Dealer will offer Battery4Life
Dealer Loan vs Dealer Advance
Comparison
DOWNLOAD BROCHURE| Item | Loan | Advance |
|---|---|---|
| Do you have to change your F&I provider? | No | Yes |
| Rate Disclosed | Yes | No |
| APR Disclosed | Yes | No |
| Truth-in-lending | Yes | No |
| Can you pay back with any product? | Yes | No |
| Is the financial institution certified by FDIC or NCUA? | Yes | No |
| Rate of program | 10-12% | 15-25% |
Dealer loan funds can be utilized for franchise expansion, purchasing land, capital improvements or whatever your future growth plans merit. Dealer Benefit is Notre Dame FCU’s exclusive nationwide marketing agency.
Loan Numbers on $500,000
| Count | Loan Payback | Term | Amount | Monthly Payback | |
|---|---|---|---|---|---|
| Units sold a month (Preload) | 100 | $100 | 24 Months | $240,000 | $10,000 |
| VSC sold | 50 | $200 | 24 Months | $240,000 | $10,000 |
| Ancillaries sold | 100 | $100 | 24 Months | $240,000 | $10,000 |
| TOTALS | $720,000 | $30,000 | |||
| Loan | $520,000 | ||||
| DB FEE (3%) | $15,000 | ||||
| Life Insurance est | $5,000 | ||||
| LOAN DISTRIBUTION | $500,000 | ||||
| Monthly Payment | $24,599 | ||||
| Total Payback | $590,395 |