D e a l e r   P r o g r a m s

3 Dealer Programs To Choose From
The following is a brief description of each of our Dealer Programs. Dealers may select one, two or all three programs from which to finance their customers. In each program, we do all the work to manage and service the loan including: sending out the payment books; collecting payments; servicing the customer; and reporting to the credit bureaus.

Dealer Reserve Program
The Dealer Reserve Program is Security Auto Loan’s most popular dealer program. Based on the credit worthiness of your customer and the underlying value of the vehicle, we typically provide from 30% to 80% of the amount financed directly and up front to the dealer. This amount plus the down payment to the dealer from the customer generally covers the dealer’s cost in the vehicle, plus a profit. In other words, you are generally “out of the car” as it rolls off your lot!

The remainder of the amount financed is recorded in a “Dealer Reserve” account. Money is paid monthly to the dealer based on this account provided the customer makes payments to Security Auto Loans. Since all deals done with a particular dealer are summed or “pooled” together, the more deals done, the greater the size of the monthly check to the dealer! Provided customers satisfactorily perform on their loans, the dealer will receive these monthly payments until the entire reserve balance is paid out.

Why select this program?
Many dealers enjoy this program as it provides profits up front and down stream. In addition, the down stream payments to the dealers represents cash flow that helps them smooth out their operations. Also, since all deals completed with a particular dealer are pooled together, the risk to the dealer that this cash flow will be interrupted is greatly reduced!

Payment Sharing Program
Like the Dealer Reserve Program, we provide a percentage of the amount financed on the vehicle up front to the dealer. Again, the percentage (in this program typically 30% to 50%) is based on the credit worthiness of the customer and the value of the automobile. However, in this program there is no reserve. Rather, we pay to the dealer 25% of each customer payment that we receive. It’s that simple!

Why select this program?
Some dealers find this a simpler program to use. Each deal stands on its own, which means that there is no pooling of reserve moneys and therefore no reserve calculation for determining the dealer’s payment. It’s just a straight forward 25% of the top of each customer payment, sent to the dealer.

Service Program
In this program the dealer is actually financing the customer including choosing the interest rate (so long as it is within state guidelines). Security Auto Loans performs as the dealer’s loan servicing agent – managing and servicing the loan as described above. In this program we pay the dealer 90% of each payment we receive from the customer.

Why select this program?
Some dealers wish to provide their own financing for their customers but don’t want to set up all the operations necessary to manage and service the loan. We do all that for you for a fee of 10%.

Please contact us with any questions and for help selecting which programs will work best for you.