18 May 2020 · 3 min
Luke and a co-host discuss Wells Fargo cutting lending to independent dealers and why dealers need multiple lenders. They mention Capital One, Santander, and Ally as alternatives, and preview an upcoming interview with Ken Chilson of Subprime Analytics about buy-here-pay-here opportunities.
Chapters
Hey, Luke.
Happy Monday, buddy. Spring is sprung. Summer is in full speed here. We're getting up in the 90s. In my neck of the woods, things are getting hot. Everyone's out and about again, spreading viruses all over the community. So who knows what's gonna happen? But the market is still a little bit scared and people are getting crazy, and we've got some corporations. You know, the big news out of last week was Wells Fargo shut off 90% of their independence. And I think a lot of our people, friends, dealers, that were heavily reliant on Wells Fargo as a lending option, they're scrambling right now. Right?
Yeah. You know, and this happens, and I don't want to say this, but if you're not prepared to lose a lender, then you've got some other issues, too. Now, I do understand that Wells is big for a lot of people, but if Wells, if you roll with Wells, you're probably on with Cap One, you're probably on with Santander maybe, and a couple other big groups. So don't fret. This happens. Don't make your lender, I don't make your rep mad, because if you do that or if you piss somebody off up in the, in the hierarchy of Wells Fargo, they're not going to sign you back up when, when it comes back around. So, you know, you got to understand, these business, these big businesses have to save themselves, too. And sometimes that's cutting back now, you know, for them to just single out independents and not every dealer across the board, and look at what they have to me, is unfair because there's plenty of independents to do it way better than a lot of franchise stores. So I can understand the frustration there. But.
Yeah, it seems like a ridiculous move. Why not? I mean, you could tighten up if you want to, right?
You could.
A lot of lenders just tightening, and these guys just straight up drop you. I mean, you.
It's not.
I was looking at. Yeah, they're willing to drop you at the. No matter what you've done for them. Why be beholden to any one lender, right?
That's right. And, you know, it gives you a time to pivot. And that's, you know, that's the word, right? That's the word during COVID 19 is pivot. Pivot your business and pivot what you do and learn how to use another lender, learn how to use Ally, go pick them up. You know, I think this gives you an opportunity. If you were dependent on Wells, hold tight, find somebody else and keep going.
Yeah. And the other thing is Thursday's episode. We're going to be speaking with Ken Chilson, Subprime Analytics. I know a lot of dealers are talking, hey, I want to start dabbling in some buy here, pay here. I think the buy here, pay here market is going to be strong whether you dabble or whether you jump in headfirst or whether you've already been treading water like the rest of us. Ken is going to give us some real awesome stuff this Thursday.
What's so important. There is a lot of these retail dealers who maybe started as buy here pay here and moved out of it into retail space and maybe, you know, maybe they they're going to start moving back in a little bit. So make sure that you've got all your bases covered because this is gonna this time is unprecedented like we all hear. But it might be a good time to pivot back into something else.
Awesome. Luke, talk to you Thursday.
All right, buddy.