Fueling the Demand for Residual Based Financing


Fueling the Demand for Residual Based Financing
Fueling the Demand for Residual Based Financing
As the number one residual based financing company in
the U.S. for cars, trucks and SUVs, Autoflex Leasing enjoys
a tenured, 33-year history with strongholds in Texas,
Oklahoma and Arkansas. With a relevant approach to client
relationships, the Autoflex platform involves knowledge and
experience with diverse financing options. Autoflex clients
include: nine state and medical associations, professional
baseball and basketball athletes and The National Football
League Players and Coaches Association.
Change. It’s an inevitable part of business. Financing,
as it relates to the auto industry, gives credibility to this
evolutionary fact. The sequel to the heightened popularity
of residual based financing was economic dormancy
from 2008-2010. This recession surprised even the most
astute professionals within the auto industry. Just ask
David Blassingame, Managing Partner of Autoflex Leasing.
According to David,“…the recession led to a mass exodus
of banks offering residual based financing. With the demise
of these lending alternatives, we were left with a major void
in consumer offerings.”
When David talks about changes within the auto industry,
he states: “Post-recession, residual based financing has
become the most aggressive lending option. The amenities
include: balloon specific products through our Flex Buy
Program, reduced payments (significantly less than
traditional retail payments) and regular trade-ins.”
Autoflex Meets DrivingSense
With the strategic Auto Financial Group (AFG) alliance,
Autoflex has experienced increased sales of 10-15% with
balloon notes. According to Blassingame, AFG’s DrivingSense
program is the catalyst for an average of 50 balloon-funded
transactions per month. With program-eligible vehicles,
consumers get what they want, while lenders enjoy higher
yields. As David says, “It’s a sweet spot in the program. You
only pay for the part of the car you’ll use.”
The Autoflex/AFG partnership filled a void and David
Blassingame has never looked back. The alliance created
immediate access to specialized technology for David’s
dealership and financial flexibility for the Autoflex consumer.
AFG’s platform is formidable because their programs and
technologies are designed for today’s buyer and marketplace.
As the go-to source for awareness and education of financing
options, AFG is driven by results. David continues the
conversation by saying: “The use of AFG’s Dealer Inventory
Download (DID) provides one click access to our entire
inventory of vehicles. Sales professionals have the tools to
match customer needs, payment requirements and vehicle
availability at a glance.” The AFG process is flexible and
easy to use, and Autoflex has been the beneficiary of these
offerings. Consumers have financial flexibility, and lenders
receive a higher yield. The Autoflex result: increased savings
and heightened customer satisfaction. From due diligence
to closure, Autoflex has complete and ongoing access to
AFG’s expertise and technology. On-site training conducted
by hands-on, seasoned professionals is part of the AFG
concierge experience.
With a proactive posture for end-of-term alternatives, AFG
reaches out to its clients in the last 12-18 months of the
loan term. This provides customers with a detailed analysis
of their options based on contract terms. Buyers can
purchase, trade, sell or relinquish the vehicle at maturity.
4550 Post Oak Place Drive, Suite 139, Houston, TX 77027 | 713.812.3333 | Toll Free: 877.354.4AFG
Change is inevitable. As residual based financing continues
to attract a significant market share, adaptability is key to
sustainability. With a commitment to both the process and
the outcome, AFG continues to provide premier customer
service. The ultimate endorsement comes from David
himself, “We have nothing comparable to the AFG product.”
Residual Based Financing for
Every Make and Model of
Transformational. Transactional. Transparent. AFG is
a leader in the industry focused exclusively on web-based
vehicle financing solutions for lenders and dealers. With
an expansive portfolio of financing options, AFG offers
the DrivingSense program which includes internet-based
software that makes it easy for dealerships and lenders to
offer a branded balloon loan option to their customers.
The DrivingSense program:
1) guarantees the predetermined residual
value of the vehicle while eliminating
the red tape involved in the disposition
of the vehicle at the end of the contract
2) a
llows current year, future year and up to
five years used vehicles on the program
3) p
rovides dealers with a great certified
pre-owned financing option
4) g
ives lenders a great way to differentiate
their indirect program from the multitude
of financing options available to dealers.
miles. Surrender the vehicle or make a final loan payment...
this type of freedom enhances the consumer/dealer/
lender relationship and is one component responsible for
the landmark rise in the residual based financing market.
Consumers can win but they can’t lose!
In 2013 and 2014, there’s been an epic increase in leased
vehicles. Specifically, 28% of new vehicles sold in the U.S.
last year used some form of residual based financing.
According to Edmunds.com, leasing is more popular than
ever, after dropping in 2003 and again in 2009. The site
further notes: The price advantage is clear. The difference
between the average monthly finance payment and the
average residual based payment is greater than at any time
since Edmunds started keeping those records.
“With access to AFG’s
unprecedented webbased program, Autoflex
experienced increased sales.”
There’s more. Because change drives the auto industry,
AFG is uniquely positioned to offer a credible alternative
in the form of residual based financing and a competitive
advantage which transcends the traditional loan process.
AFG products have simplified the balloon note process,
providing clients a detailed and transparent analysis of
options. Consumers are empowered with alternatives and
the ability to make an informed decision. There’s literally
something for every make and model of customer.
In lieu of leasing, balloon lending is attractive to many
consumers because buyers avoid the initial cash outlay,
enjoy lower monthly payments, retain the title of the vehicle
and choose an end-of-term option that includes the choice
to relinquish the vehicle and walk away. This offering is
compelling to customers who trade vehicles every 3-5 years.
They keep the vehicle for a specific number of years and
4550 Post Oak Place Drive, Suite 139, Houston, TX 77027 | 713.812.3333 | Toll Free: 877.354.4AFG