Diversified Alliance Funding - Automobile Notes

When individuals purchase a new or used automobile, the financing for which they qualify depends on their credit rating. Only a small percentage of individuals fall into the “A” credit tier. Individuals who fall into the B through D credit tiers typically do not qualify for prime loans. These types of customers, referred to as “sub-prime”, must obtain financing through automobile dealers, private investors, or specialized finance companies.
We will find a funding source that is interested in purchasing large portfolios of notes originated through auto dealers.
The sub-prime auto financing market is the fastest growing segment of the automobile finance industry, as the statistics below show:

Over 73% of American households cannot afford a new car
50% of those who cannot afford a new car are considered credit-impaired
Sales to sub-prime buyers are expected to be $100 billion

As a used-car dealer, you can earn great profits not only from the sale of the auto, but also by providing financing in-house.
We have the connections to the funding sources that want to buy your auto note portfolios keeping your dealership competitive! Minimum portfolio purchase size is $200,000. Please contact us today at 847-224-3817 or e-mail your completed worksheet for us to see if the transaction meets our financial criteria.
What are the benefits of selling your auto note portfolios?

It provides immediate cash without bank financing, which you can use to purchase more inventory or open another location
You no longer have the risk of non-payment from credit customers
Placing auto loans with a funding source at point-of-sale allows you to offer better credit terms to customers without securing a bank line of credit

Our Funding sources can offer different financial programs.
Bulk portfolio purchases — This program is good for auto dealers who offer "in-house" financing to their consumer vehicle buyers. We are interested in those contracts that are seasoned with three or more months of payments collected and those contracts that total $200,000 and larger in value.
The current price range for seasoned portfolios are:

Monthly payments — 70 percent to 85 percent of the remaining principal balance (the higher price range for portfolios exceeding $1 million and seasoned with six or more months of payments collected)
Weekly, bi-weekly, and semi-monthly payments — 55 percent to 75 percent of the remaining principal balance (the higher price range for portfolios exceeding $1 million and seasoned with six or more months of payments collected)

To obtain a purchase proposal, e-mail us your completed spreadsheet of the portfolio contract data.
Point-of-sale financing — This is a situation where an auto dealer has arrangements with a finance company to buy the auto contract as a condition of selling a vehicle to a qualifying consumer.
Floor plan financing — This is a revolving line of credit provided to auto dealers to finance their vehicle inventory. Our sources will consider a line of credit up to 10 percent of the auto dealer’s annual auto sales and includes any other floor plan line of credit the auto dealer may already have with other lenders. To be considered, the owners of the auto dealership must meet the following minimum requirements:

In business for one year
No prior bankruptcy
Minimum credit score of 650
Own some type of real estate
Credit card outstanding balances not to exceed $25,000

If you meet these requirements, please e-mail us your completed dealer application.

Auto receivables revolving line of credit — The minimum amount considered is $5,000,000. This line of credit is specifically for auto dealers who want to finance their own receivables. To be considered, an auto dealer needs to have a minimum of $2,000,000 of auto receivables that have at least one year of aging.

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