Along with deeper analysis into delinquencies, TransUnion’s director of research and analysis in Canada Jason Wang shared exclusive data with Auto Remarketing Canada that pinpointed the swift upward trajectory consumers are taking with regard to how much auto finance debt is now on their individual balance sheets.
Viewed one quarter in arrears to ensure all accounts are reported and included in the data, TransUnion determined the average amount being financed in the first quarter reached the highest level since the firm began tracking this metric. Wang told Auto Remarketing Canada the reading hit $30,105 in Q1.
Going back two years, Wang calculated the cumulative annual growth rate for the average amount at origination to be 5.9 percent. The growth path has been even steeper since the second quarter of last year when Wang pegged the average at $27,458.
“That’s quite a lot. This definitely supports our conclusion that consumers are putting more amounts on their loans,” Wang said.
Wang explained that more seasoned contracts in finance company portfolios are the reason the overall average amount still outstanding that TransUnion reported for Q2 wasn’t higher. Analysts put the Q2 average balance at $19,896, which represented a 3.2 percent increase year-over-year.
“In time, the new loans that come in will take a bigger presence,” Wang said about the prospects for that overall average balance to top $20,000 relatively soon.
Meanwhile, when looking at how Canadian consumers are staying current on their contracts, Wang described how delinquencies really are “two stories.” First, here’s the introduction.
Wang’s exclusive data indicated the overall 60-day delinquency rate in Canada came in at 1.37 percent in Q2, just 3 basis points higher than a year earlier and 6 basis points lower on a sequential comparison.
Where the tale of two stories regarding delinquency arrives is when Wang broke out the 60-day delinquency rates by major province. TransUnion’s latest data is as follows:
—Quebec: 0.91 percent
—Ontario: 1.00 percent
—British Columbia: 1.53 percent
—Alberta: 2.87 percent
—Saskatchewan: 2.97 percent
“It’s very hard to define what is normal, particularly when you look at the story in Canada. There isn’t a one, unified story. It’s two stories,” Wang said. “There’s what’s going on within the oil patch and what’s happening outside of the oil patch. We really can’t say what is normal.”
And Wang also pointed out that these two stories aren’t necessarily breaking ones that developed this past quarter. Going back to the beginning of 2014 when energy prices were more robust, Wang noted that TransUnion data had Alberta’s 60-day delinquency rate at 1.86 percent and Saskatchewan’s at 2.23 percent. At that point, the nearest rate was British Columbia’s, but it was still 43 basis points lower.
“When you look at when oil prices were high, the delinquencies were higher than the rest of the country already,” Wang said about the rates for Alberta and Saskatchewan. “What’s more important than the level is the trajectory. Unfortunately they’re not showing a healthy trajectory.
“In Q2 to Q1, it seems the upward slope has slowed down a little bit,” he continued. “I certainly hope that we’ll see the delinquency increases slow down and maybe come back a little bit. At this point, they are so much higher than the rest of the country that I think the industry just like us are a little concerned.”
To explain why the situations in Ontario and British Columbia are so much more stable, Wang cited information from Statistics Canada to back up his reasoning.
“The major headwind that the Canadian economy is facing today is the lower oil price, and it’s not a surprise,” Wang said. “If you look at the presence of the oil industry in the provincial GDP numbers, in 2015, the most recent annual data point, 28 percent of Alberta’s GDP is directly related to oil and gas extraction. In other words, more than a quarter of that province’s GDP comes out of oil. Of course there are a lot of indirectly related industries that support that, which is why with the lower oil prices we see challenges in Alberta.
“That is not the case for Ontario or British Columbia. There is almost no oil extraction activities in Ontario. And there’s 3 percent in British Columbia. And you could even argue that 3 percent is like nonexistent,” he continued.
So what is pushing Ontario and British Columbia?
“When it comes to what’s happening in Ontario, the biggest industry is service, and that counts for 77 percent,” Wang replied. “When you look at what’s going on in Toronto in particular, there’s a heavy presence of the brain industry — for example banking and consulting. These industries are energy neutral. It doesn’t really matter if the oil price is high or low. The oil price generally doesn’t not affect the service industry.
“When you go beyond Toronto, there’s manufacturing, which accounts for 13 percent of Ontario’s GDP. Manufacturing is an energy consumer, so what that means is the lower energy price actually becomes good news for the manufacturers because it means lower costs for them. Manufacturers also need to export their product and they’re benefitting from the lower Canadian dollar that resulted from the lower oil price. In a way, Ontario is really benefitting from the lower oil price,” he continued.
“When we go to British Columbia, about three-quarters of that province’s GDP is from the service industry. When we look outside of the service industry there’s 7 percent in manufacturing and 8 percent in construction. Again these are energy consumers,” Wang went on to say.
“Ontario and B.C. have very different business models,” he concluded.
For dealerships and finance companies with significant customer bases hailing from Ontario and British Columbia, TransUnion shared some good news this week pertaining to the frequency with which these contract holders are staying current.
Ontario and British Columbia consumers are exhibiting robust credit activity through the first half of 2016, according to TransUnion’s latest Canada Industry Insights Report. In Q2 2016, consumers in these two provinces experienced stable delinquency levels while balances rose modestly.
“As two of the nation’s largest provinces, Ontario and British Columbia have proven to be resilient during challenging economic conditions brought on by the oil slump and the recent wildfire in Alberta,” said Jason Wang, TransUnion’s director of research and analysis in Canada.
“With more than half of Canada’s credit-active population residing in these two provinces, their stable performance is a positive for the overall economy,” Wang continued in a news release accompanying the report.
TransUnion indicated Canadians reached a non-mortgage debt balance of $21,580 in Q2 2016, up 2.9 percent from $20,973 in Q2 2015. With respective growth of 3.1 percent and 2.0 percent, the report showed Ontario and British Columbia were among the provinces with the highest balance growth rates.
On the city level, Toronto residents increased their balances year-over-year by 3.6 percent, whereas Vancouver consumers had an even bigger yearly increase of 4.6 percent.
Meanwhile in the oil patch, debt readings came in as projected but not as healthy as Ontario and British Columbia.
“Alberta and Saskatchewan experienced yearly double-digit percentage delinquency increases, but this was not unexpected as we had already forecast this to happen last summer,” said Wang. Last July, TransUnion released a study that predicted both provinces would face delinquency pressures in 2016 and 2017 due to falling oil prices.
While these areas face pressure on the delinquency front, Ontario’s serious delinquency rate (the ratio of all accounts 90 or more days past due for all non-mortgage loan types) dipped from 2.80 percent in Q2 of last year to 2.79 percent in Q2 of this year.
British Columbia’s delinquency rate was also flat, moving from 2.64 percent in Q2 2015 to 2.63 percent in Q2 2016.
In contrast, TransUnion pointed out the national average rose nearly 4 percent in that same time, increasing from 2.63 percent in Q2 2015 to 2.72 percent in Q2 2016.
“A year and a half into the oil slump, the lending industry has deployed resources in monitoring and managing the risks in the oil patch,” Wang said.
“With these risks being actively managed, it may benefit lenders to also consider growth opportunities in the non-oil provinces, such as Ontario and British Columbia. The key of course is for lenders to always seek balance in their lending strategies.”
More information about the Q2 2016 TransUnion Canada Industry Insights Report can be found here.
Editor’s note: Watch for a future Auto Remarketing Canada report where Wang will discuss even more trends specific to auto-finance performance.
Quantech — a privately held company and developer of dealer management tools — recently added enhanced menu features to Q-F&I Online.
Quantech general manager Mike Martin said the completed modifications include the largest menu enhancement to Q-F&I Online since the product’s launch in 2013. Among the features are:
— Live menu editing from the presentation screen
— QTracker menu presentation tracking tool
— External video linking
— F&I product chooser tool
“We’ve added the entire suite of Q-Menus features to Q-F&I Online,” Martin said.
In addition, Quantech also added features not in Q-Menus; the most significant according to Martin is the ability to display multiple terms and interest rates in the same menu.
“This added flexibility makes it easy for business managers to show multiple payment options to the payment shopper,” he said.
Martin said this update consolidates Quantech’s position as a Canadian leader in standalone F&I software development.
“When you combine these new menu features with our integrations with major F&I providers & finance portals, our plain paper forms printing capabilities and our reporting, we’re clearly in a superior position,” Martin said.
He added Quantech’s new menu is fully integrated with Q-F&I and will be sold as an add-on.
For additional information and pricing, call (877) 611-0622 or go to www.quantechsoftware.com.
Sellers of new cars in Canada report increased satisfaction with their finance companies, but one thing is clear: They want more from their lenders than just credit.
According to J.D. Power’s 18th annual Canadian Automotive Dealer Financing Satisfaction Study, dealers want their auto finance providers to be true business partners.
“Dealers want their lenders to be collaborative business partners that will help them focus on the things that drive profitable growth without impairing their ability to sell vehicles,” said Mike Buckingham, senior director of the automotive finance practice at J.D. Power.
From that business partnership, dealers want personalized service from their underwriting/funding and sales teams to help them manage their credit and expedite consumer applications and funds. Dealers are increasingly concerned about customer satisfaction and rely on their lender partners to aid them in speeding up the sales, financing and vehicle delivery processes.
The study measures dealer satisfaction with finance providers in four segments: prime retail credit; retail leasing; floor planning; and non-prime retail credit. Dealer satisfaction in the prime retail credit segment is 858, and in the non-prime retail credit segment, satisfaction is 825. Dealer satisfaction in the retail leasing segment is 860, while in the floor planning segment, satisfaction is 930.
For the fourth year in a row, BMW Financial Services ranked highest in the prime retail credit segment, improving 35 points to 971 — 113 points above the industry average. BMW Financial Services performed particularly well in the application/approval process, product offerings and sales representative relationship factors. Mercedes-Benz Financial Services tanked second at 922, followed by Ford Credit Canada at 918.
Other lender scores in the Prime Retail Credit segment were:
Honda Financial Services 896
Bank of Montreal 885
TD Auto Finance 858
Nissan Canada Finance 854
Scotiabank 851
National Bank 842
Toyota Financial Services 835
Desjardins/Caisse Populaire 827
RBC Royal Bank 815
Kia Motors Finance 787
GM Financial 706
The study found that 60 percent of dealers say their prime retail credit (PRC) sales reps facilitate contract problem resolution. When that occurs, overall dealer satisfaction with their PRC lender increases by 97 points (on a 1,000-point scale). Similarly, nearly half of dealers say their sales reps provide dealership performance consulting and facilitate restructuring of applications, which lift PRC satisfaction by 95 and 93 points, respectively. Additionally, 69 percent of dealers indicate that they are always able to reach their credit staff when needed, which boosts PRC satisfaction by 104 points.
Dealers want problem solvers in both the sales reps and underwriters. For finance and insurance (F&I) managers, that means occasionally granting exceptions to get their customers the financing needed to make the sale. These requests don’t often occur; in fact, dealers request exceptions an average of 10 percent of the time. When those dealer requests are granted at least 50 percent of the time, it lifts satisfaction by 80 points.
When finance companies automatically approve applications, satisfaction increases by 75 points, and when lenders are able to fund error-free contracts within the same day of submission, satisfaction jumps by 72 points.
Low interest rates and extended terms have contributed to rising vehicle sales in Canada. While these factors are supporting dealership sales, each has the potential to negatively impact lenders’ margins and portfolio risks. Low interest rates and extended terms have supported the dealer sales growth, as the average amount financed (vehicle manufacturer's suggested retail price—MSRP) has increased to $37,794 CAD in 2016, up from $27,566 in 2010, according to data gathered by the Power Information Network (PIN) from J.D. Power.
Additionally, average loan terms from commercial banks has increased over the same period to 78 months from 69 months, while term lengths from captive finance companies have extended to 69 months from 59 months, according to PIN.
“Sales representatives are integral to the dealer-lender relationship,” Buckingham said. “To make that relationship strong requires that the lender’s rep make frequent contacts with the dealership, understand their business, provide insights on current programs and help the dealer resolve financing issues.”
“In a highly competitive market like Canada, time is of the essence,” he continued. “Dealers want to be able to get quick funding, as any delay can lead to a lost opportunity, with the customer walking out the door.”
The 2016 Canadian Dealer Financing Satisfaction Study captured nearly 6,400 finance provider evaluations across the four segments. These evaluations were provided by more than 1,200 new-vehicle dealerships in Canada. The study was conducted from January through March.
While also pinpointing where delinquencies are climbing the fastest, TransUnion’s latest Canada Industry Insights Report found that the average Canadian’s auto loan debt climbed by 2.12 percent year-over-year during the first quarter.
The Q1 figure came in at $19,538, up from $19,132 a year earlier.
Analysts noticed that the average non-mortgage debt level rose by a similar pace. The Q1 average jumped 2.7 percent to $21,348.
TransUnion explained the increase was particularly visible outside of the oil patch, with Ontario and Quebec seeing the greatest rises. Debt levels rose for most major credit products, with lines of credit being the only outlier, experiencing a 0.54 percent average balance decline.
“In credit cards, for example, the national average balance only increased by 1.8 percent from last year, but the subprime card growth rate was 5.7 percent,” said Jason Wang, TransUnion's director of research and analysis in Canada.
“In fact, prime or better segments actually reduced their balances. Although subprime consumers do not make up the bulk of Canadian credit users, we are going to keep a close eye on this trend,” Wang added.
Regional differences on the delinquency front
While national serious delinquency rates (the ratio of all accounts 90 or more days past due for all non-mortgage loan types) increased approximately 3 percent from 2.45 percent in Q1 2015 to 2.52 percent in Q1 2016, TransUnion noticed some of the most populous provinces such as Ontario and British Columbia experienced declines.
The largest delinquency rate increases occurred in provinces most impacted by the oil slump — Alberta and Saskatchewan. This regional difference is also consistently observed across different loan types.
“When it comes to loan default rates, we are looking at two distinct groups: oil-sector provinces and the rest of the country,” Wang said. “We continue to see material delinquency increases in the oil provinces, and we suspect that it will continue over the next few quarters.
“While financial institutions are understandably inclined to focus their attention and resources — particularly in the risk management arena — on their exposure to the oil patch, it’s important to note that the robustness of consumer spending and credit performance outside the oil provinces shouldn’t be ignored,” he continued.
“Lenders will likely benefit from the generally healthy and well-functioning consumer credit marketplace in the rest of Canada, particularly in those areas where the stable trend in credit usage and the sheer size of the consumer market present good opportunities for growth,” Wang went on to say.
First Access Funding Corp., a privately held non-prime automotive finance company based in Edmonton, Alberta, recently partnered with defi SOLUTIONS and Integrated Fintech in an effort as a top executive described “to take their lending program to the next level” with analytics and automation.
FAFC president and chief executive officer David Ballantine has the goal of building the company into one of the leading vehicle finance providers in Canada.
“We chose defi as our loan origination system (LOS) because the platform has tremendous power and flexibility, but to date we have not been taking full advantage of the system’s capabilities,” Ballantine said. “I knew we needed a streamlined credit program backed by strong analytics, and so our partners at defi introduced us to Integrated Fintech to help us develop a customized solution.”
Integrated Fintech was founded by veteran auto finance executives Daniel Parry and Steve Moses. Parry, co-founder of Praxis Finance and Exeter Finance, has 20 years in analytics, credit risk management, and executive strategy. Moses, president of Praxis and former chief financial officer of Exeter, has more than 20 years of experience in finance, capital markets, strategy and growth companies.
“We have worked closely with the founders of defi for nearly two decades. Having been auto finance operators, they were able to design a powerful LOS from the user’s perspective. Much the same way, as experienced lenders, we can bridge the gap between the business needs and analytic technology,” Parry said. “defi is the perfect platform to accomplish that goal, as it puts the command of data and analytics in the hands of the lender.”
First Access Funding provides loans to clients who are not able to obtain financing from traditional finance companies and currently operates through a growing network of dealership partners across western Canada and in Ontario.
“It could take years to build out both the analytic team and technology infrastructure internally, but defi allowed us to have control and understanding of our data through a system where we can implement nearly anything. With the insight of the experienced team at Integrated Fintech, and the capabilities of the defi platform, we are well positioned to accomplish our goals,” Ballantine said.
“defi customers, as well as the rest of the industry, will benefit from this as applied knowledge is power — and the more the better,” he went on to say.
Dealertrack Technologies has teamed up with DealerCorp to expand the former’s F&I solution suite in Canada.
As part of the exclusive partnership, Canadian dealers will be able to access a new desking solution from Dealertrack, powered by DealerCorp.
It will be available for Canadian dealers on Friday.
In its news release, Dealertrack listed the following as some of the retail management solution’s benefits:
- Robust functionality to enable dealers to collaboratively work with customers in real-time to structure deals and payment options.
- Customized, professional F&I presentation tools that gain customer confidence and satisfaction through transparency.
- Complete, intuitive process to streamline workflow.
“The car shopping experience continues to be the key to closing deals and creating a satisfying customer experience,” said Mark O’Brien, senior director of dealer solutions, Canada, at Dealertrack. “Working on the structure of a car purchase, including financing while the customer is in the store, can be the difference between making the sale or having the shopper walk out the door. This tool will help to enrich the buying experience for the customer by providing a greater level of transparency and professionalism during the process.”
Gordon Leach, chief executive officer of DealerCorp, added: “The partnership with Dealertrack was exactly what we were looking for. Not only are we thrilled to get this exciting product to market with such a dynamic company, but more importantly we are combining the unique technologies of both organizations. This new partnership will develop innovations that we believe will take the automotive retail experience to the next level."
Rapidly falling oil prices — and the consequent weakening of the Canadian dollar — contributed to a near 10-percent increase in auto loan delinquencies over the course of 2015.
That’s according to TransUnion’s latest MarketTrends report, which showed auto-loan delinquencies increased to 1.32 percent in the fourth quarter of last year, which is also the highest level observed in four years.
Not surprisingly, this dramatic spike in auto loan accounts 60 or more days past due, including write-offs, was pushed mostly by increases in delinquencies in Alberta and Saskatchewan — the Western provinces that have been most impacted by the drop-off in oil prices.
"This was the largest spike in the national auto loan delinquency rate that we've observed in quite some time, but we do think it's a regional issue," said Jason Wang, TransUnion's director of research and analysis in Canada. "Falling oil prices have led to rising unemployment rates in oil-rich regions. We are now seeing the increase in unemployment in these areas manifest as rising delinquencies across the board, though the greatest impact has been on auto loans."
As of Q4, Saskatchewan had the highest auto loan delinquency rate of all provinces at 2.7 percent, which represents a staggering 19 percent year-over-year jump. Alberta was up next with the second highest rate of 2.4 percent, but this number represented an even bigger year-over-year jump: 35 percent, to be exact.
Interestingly, a TransUnion oil trend impact study released last summer predicted double-digit increases in delinquencies for “oil-rich regions” through at least 2016.
"We're pleased our forecasting models were so effective, although it's unfortunate our news is not positive," said Wang.
In provinces like Quebec and Ontario, regions not impacted as dramatically by the oil slump, the story was a bit different. Quebec touted the lowest auto loan delinquency rate of 0.92 percent in Q4, which represents a 1.3-percent year-over-year increase, while Ontario’s rate was 1.01 percent last quarter, which was a 1.5-percent jump from Q4 2014.
So, why the better performance for Quebec and Ontario? It comes down to the markets in those provinces, Wang explained.
“When it comes to Ontario and Quebec, we know these are not oil producing provinces, and they are net energy consumers,” Wang said.
In Toronto, he explained, there is a large concentration of financial services businesses, which are energy neutral, and if one goes a little further outside of Toronto into GTA, the area has a lot of manufacturing businesses and farming, which are energy consuming industries.
“So the lower energy price is actually good news for these manufacturers and farmers because now that means lower costs for them,” Wang said.
Also, when you take a look at the weaker Canadian dollar, one has to understand that this trend helps some of the Canadian manufactures export their products, “because if everything is cleared in U.S. dollars, then their products are cheaper and more competitive in the international market,” according to Wang.
And Quebec, also not an oil producing province, has traditionally been a “cash society,” Wang said.
“So it’s just the culture of their province where people like to use cash, and they’re a little conservative. Now, this is when I think being conservative is actually working in their favor,” he explained
Dropping oil prices and economic struggles in Western Canada are definitely contributing to overall auto loan delinquency increases, but are there any other factors at play here?
Wang told Auto Remarketing Canada that it really comes down to one word: oil.
“Actually, this will be I think the single biggest factor causing the higher delinquencies in auto loans, particularly in the oil regions, such as Alberta and Saskatchewan. As oil prices began to go down, typically a new-car loan opened these days has a much bigger amount that is being financed,” Wang said. “So people are buying bigger cars, or putting more on the loan, so all of a sudden now, when the low oil prices are causing higher unemployment in the oil region, than that reduces the income for a lot of consumers, and they won’t have enough cash to maintain their debt.”
And this auto loan delinquency trend is already a very serious issue, especially in Alberta and Saskatchewan, Wang said, considering the two provinces' rates in regard to delinquencies are double the national average.
“We forecasted this increase, and it’s happening a little too fast already, but how much higher it’s going to go from here in terms of auto loan delinquencies, there’s no good quantitative measure, but directionally, we can say that it will become worse," said Wang.
60+ DPD Delinquency Rates for Auto Loans and Leases
|
|
Q4 2014
|
Q4 2015
|
Yearly PCT. Change
|
|
Canada
|
1.21%
|
1.32%
|
9.6%
|
|
Alberta
|
1.80%
|
2.42%
|
34.6%
|
|
Saskatchewan
|
2.24%
|
2.66%
|
18.9%
|
|
British Columbia
|
1.28%
|
1.41%
|
10.3%
|
|
Ontario
|
0.99%
|
1.01%
|
1.5%
|
|
Quebec
|
0.91%
|
0.92%
|
1.3%
|
Surprisingly, the TransUnion report showed that when all non-mortgage loan products are considered together, delinquency rates remained nearly the same at the end of last year as in Q4 2014. According to the report, delinquencies rose one-basis point from 2.66 percent in Q4 2014 to 2.67 by the end of 2015.
In other words, auto loans are certainly being impacted the most by the current economic conditions.
“Our data does show that out of the credit products, auto loans is the one that is impacted the most. Our report is focused on non-mortgage debt, so typically we call this consumer credit, and in year-over-year increase in delinquencies, obviously auto loans is the worst, but when you look at the absolute numbers, as always, credit cards will have the highest delinquency number. But it’s just the trend in auto loans is a little alarming,” Wang explained.
So what needs to change to turn this alarming auto-loan trend around? Wang said there are things that lenders can do, which is why the company released and oil study in 2015 — to warn lenders of the coming delinquency problems that are showing up today.
“Fortunately, a lot of lenders did listen to us, and they subsequently tightened their strategies,” Wang said.
When it comes to risk management, he explained there’s two issues to look at. First, what do lenders do with their new accounts in light of recent trends, as well as what actions they take with their existing portfolio.
“It’s relatively easier at this point for anyone who has lending business in Alberta and Saskatchewan to tighten their new account acquisition criteria, because that’s a customer you haven’t let it the door yet, and you can simply say from now on we are raising the bar and increasing the threshold, and we want you to have excellent credit before we give you the car loan, so it’s easier for new accounts,” Wang said.
But for existing portfolios, it’s a little bit harder. In other words, there are limited actions lenders can take when a loan vintage — 2015, in this case — goes bad.
Wang used the analogy of making wine: “If a particular year was not very good, and then you have that 2011 batch that’s not good, there’s nothing you can do because the batch isn’t right,” he said.
But one thing lenders can do when it comes to these existing portfolios is to keep a close eye on these customers on their existing books.
“There is the dynamic monitoring so that when something happens to the consumer, you get a trigger or an alert, so you can start an early conversation with the customers,” said Wang. “Or there is payment behavior monitoring when you know the consumer doesn’t have enough cash to pay their debt, and then even though they are not defaulting, chances are they are going to default in a couple of months, so you start the conversation. So, these are the things that the lenders can do.”
RouteOne Canada added another a company to its auto financing portal today, after announcing last month that Rifco National Auto Group and Desjardins Group had come on board, as well.
Carfinco Inc. now joins the growing list of companies to partner with RouteOne Canada.
"We strive to bring our customers best-in-class solutions, with a wide range of flexibility, that meet varying levels of needs," said Barry McMillan, RouteOne Canada president. "Adding Carfinco as an available finance source on RouteOne helps reinforce that goal with the range of financing options they provide to our dealers."
Now, participating dealerships who have a relationship with Carfinco can process credit applications and finance contracts through RouteOne.
Carfinco specifically provides financing options that work to enable dealers to offer credit solutions to non-prime customers.
"Carfinco continues to focus on improving customer access to our financing options. Joining RouteOne's portal means we have taken a significant step forward in meeting this objective. At the same time, Carfinco will better serve a large portion of our existing dealer network, and will be able to service new dealers," said Tracy Graf, Carfinco’s president. "We are excited to partner with RouteOne and look forward to working with such a technologically dynamic company."
Two companies recently announced they have joined RouteOne Canada’s auto financing portal: Rifco National Auto Group and Desjardins Group.
First up, in light of the partnership with Rifco National Auto Group, participating dealers who have a relationship with Rifco can now process credit applications and contracts through RouteOne.
“We are excited to add the RouteOne platform to our distribution network.” said Monte Coates, Rifco’s COO. “RouteOne will allow Rifco to service numerous additional dealer partners throughout the country with the high degree of speed and service our existing partners have come to expect.”
Rifco’s non-prime offerings, in particular, means more financing options for dealers using RouteOne Canada.
“We are pleased to bring our dealers the financing options that Rifco can offer” said Barry McMillan, RouteOne Canada president. “We share the same ideals of putting the customer first and making a faster, more efficient process for our dealers to do business.”
The Desjardins Group — a cooperative financial group — also joined RouteOne Canada’s auto financing portal.
Consequently, dealers who are accredited with Desjardins Group can now access their credit services and process credit applications and finance contracts through the RouteOne platform.
“Desjardins Group brings an important option with its range of competitive auto lending options,” said McMillan. “Choice is a big part of the auto retail business for everyone involved, and we are very pleased to welcome Desjardins Group to our platform as a well-respected lender.”
RouteOne Canada’s credit application management system enables automotive dealers to access their finance sources, exchange credit application and decision information, and print their documents online, all within a single platform.
Andre Chatelain, vice-president and general manager of Desjardins Card Services, said, "Desjardins continues to embrace new technologies and processes to improve efficiency and customer experience for members and clients. Desjardins’ presence on RouteOne will enhance access and reach of our financing offer for automobile dealers in Quebec, Ontario and select dealers across the country."
