How to [Sell] Your Auto Loan Portfolio: The Ultimate Guide to Selling Bulk Auto Loan Notes
What is an auto loan portfolio?
An auto loan portfolio is a collection of auto loan accounts that can be sold to a debt buyer. This can include performing or charged-off accounts, as well as auto deficiencies. Selling auto loan portfolios can provide liquidity for lenders and dealers to issue new loans, optimize resources, and control and collect debt. It can also provide a lump sum of money for buy-here-pay-here dealerships without adding new debt to the business, allowing for expansion and customer financing. Proper portfolio management is important for balancing and protecting collateral over the long loan terms.
Why sell your auto loan portfolio?
1. Increase liquidity and access to cash
2. Increase returns on investment
3. Reduce risk
4. Streamline operations
5. Take advantage of market opportunities
6. Expand portfolio offerings
7. Increase efficiency
8. Improve customer experience
9. Improve customer satisfaction
10. Expand client base
How to sell your auto loan portfolio
Step 1: Collect information on your loan
Step 2: Get the loan payoff amount
Step 3: Determine your equity in the car
Step 4: Work with your lender to complete the sale
Step 5: Consider selling your car’s equity
Step 6: Work with your lender to complete the sale
Step 7: Transport the asset
Step 8: Finalize the sale
Tips for getting the most out of your sale
1. Research the various bulk auto loan purchase programs
2. Identify the best buyer for your portfolio
3. Understand the due diligence process of the buyer
Let’s look at this in more detail:
- When lenders or dealers face a shortage of funds for new loans, going to the bank is not always possible and profitable, so selling part of the portfolio becomes a beneficial option for the company because for such debt you can get up to 90% of the debt. And the money received can be spent on issuing new loans.
- You are getting market indicators about the current liquidation value of your portfolio. It can be suitable for understanding how to improve the capitalization of your business.
- Portfolio sales help lenders and dealers optimize their internal resources to control and collect debt.
Here are a few highlights of some of our auto bulk purchase programs:
- ENTIRE PORTFOLIO LIQUIDATION (performing and non-performing loans)
- TOP ADVANCES IN THE MARKET
- NO RECOURSE PROGRAMS
- NO RESERVE PROGRAMS
- ALL PAYMENT FREQUENCIES ACCEPTED
- ALL PORTFOLIO SIZES WELCOME (250k and higher preferred)
- ALL MAKES, MODELS, MILEAGE, even REBUILT OR SALVAGED TITLES
- NO SEASONING REQUIRED (Most lenders prefer 90 days of portfolio seasoning, but we also have programs to purchase fresh loans with extended recourse)
In just 5 steps, we’ll turn your buy here pay here notes into cash. Use the tabs below to read a detailed breakdown of the 5 steps of selling your bulk auto loan portfolio! Or get started now using the form above.
- YOU send in your data Submit a file directly through Frazer, or email it to Sales@autobulk.com.
- WE generate a purchase offer We review your data file and email you a purchase offer in 24-48 hours.
- YOU send in documents for review Submit your requested documents on our easy to use, secure document upload site.
- WE begin due diligence review We review your submitted documents.
- YOU send in closing documents Upload closing documents to your secure upload portal and the funds will be wired to your bank account.
After receiving your data file, we will complete the following tasks to generate a purchase offer on your loans:
- Review the Data File : ( Review all aspects of risk contained in a loan file. By completing a comprehensive loan file review, our buyers have the accurate information needed to price, acquire and service the assets.)
- Check LTV% Ratio : ( The loan-to-value ( LTV ) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased)
- Calculate Risk Ratio ( risk ratio (RR) is the ratio of the probability of an event occurring)
- Match the accounts that fit the given Finance Program
- Generate a Purchase Offer or (LOI- Letter Of Intent) for your loans
Loan and Customer Documents:
- Copy of the Original Contract
- Copy of the Credit Application
- Updated Payment histories
- Copy of Buyer’s Order or Bill of Sale
- (If applicable) Copy of Disclosures for GPS, GAP, or Warranty.
Improve Your Dealership’s Profits when Sell Buy Here Pay Here Auto Notes