Lyft and Uber drivers not only might have a path to generate funds for a down payment when acquiring a vehicle at certain dealerships, they also could take advantage of a solution to help their credit situation.
DriveItAway, a company concentrating on dealer-focused shared mobility, announced on Wednesday that it is partnering with Get Credit Healthy to pilot what the operations say is the first “no strings” free national credit repair/rehabilitation service for Lyft and Uber drivers.
The companies explained this opportunity to rebuild personal credit is free to all drivers in a dealer-supplied vehicle on the DriveItAway Car Sharing platform, with no obligation to use any particular vehicle, dealership provider, or any vehicle purchase commitment.
After a week in good standing, all drivers on the DriveItAway dealer Car Sharing platform can receive a free invitation to utilize Get Credit Healthy’s credit rehabilitation service, which has been seamlessly integrated into the DriveItAway driver app. The service remains free, as long as the driver remains a DriveItAway customer.
On the dealer side, DriveItaway has integrated Get Credit Healthy’s leading fintech platform, to provide its dealer partners with data intelligence and sales lead recovery that turns credit “fall out” into funded vehicle loans and sales.
Chief executive officer John Possumato insisted this life-improvement service is a true differentiator and fits right in line with DriveItAway’s mission to put all of its clients on a “path to ownership.” Possumato explained all ride share drivers will be able to access it right from the platform, free of charge, and it will help all dealers facilitate a vehicle sale to all those drivers who are looking to buy.
“This is an industry first, in that this type of service has not yet been offered in this “no strings” way. Partnering with a company like Get Credit Healthy in order to offer the best comprehensive credit remediation program for our longer-term drivers is a natural step for us,” Possumato said.
“This fits perfectly with exclusively car dealer clients who provide temporary vehicles for Lyft and Uber drivers,” he continued. “It is fully compliant, as there is no obligation for a renter-recipient to buy a vehicle from any specific car dealer, nor is there any obligation to buy a vehicle at all.
“Our goal is to make it a win for all and, with the ‘on-demand’ employment ride sharing provides, improve lives by making it easy for everyone to increase income and improve credit,” Possumato went on to say.
Get Credit Healthy CEO Elizabeth Karwowski elaborated about why her company chose to align with DriveItAway.
“Get Credit Healthy’s traditional partners have been financial institutions, mortgage companies, and municipalities,” Karwowski said. “The common mission of our two companies is to provide our clients with the means to improve their financial lives and provide them with the necessary tools and education to help them sustain those improvements.
At Get Credit Healthy, we are passionate about providing consumers with the tools and resources they need to eliminate debt, build credit and make sound financial decisions,” she continued.
“That’s why we are delighted to be launching this new program with DriveItAway, and to make this life improvement option available for the first time to members of the new ‘gig economy’ in shared mobility,” Karwowski added.
For more information, all current or potential drivers interested in the program are encouraged to visit this website.
DriveItAway will be introducing this new feature to its turn-key car sharing for ride sharing program for dealers at the National Automobile Dealers Convention this week in San Francisco.
To learn more or to set up a private meeting to talk about the benefits of implementing mobility as a service at your store, visit www.driveitaway.com/nada2019.
An executive from another provider of vehicle service contracts, who also spent several years running franchised dealerships, now is with AUL Corp.
AUL president and chief executive officer Jimmy Atkinson on Thursday appointed automotive veteran Paul McCarthy to the position of vice president of national sales. The company highlighted McCarthy brings more than two decades of retail automotive experience to his new role and chose AUL to provide focused leadership to the firm’s outreach to large opportunities in the franchised automotive dealer space.
“Paul allows us to expand our bandwidth and diversify our sales approach by placing key verticals under the leadership of our industry experts,” Atkinson said. “Paul complements Bryan Nieves, our vice president of national accounts, whose outreach centers primarily on lenders and reinsurance, and Jason Garner, senior vice president of sales and business development, whose group is focused on agent growth.
“As a team, they provide AUL with superior depth, allowing for a higher degree of personal interaction and attention to detail,” Atkinson went on to say.
Most recently, McCarthy was vice president of sales at Warranty Solutions, another national provider, dealer warranties, auto finance and insurance products to dealerships.
Prior to Warranty Solutions, McCarthy spent nearly 20 years with the Stevenson Automotive Group, one of the largest automotive dealer groups in North Carolina as its corporate general Manager. During his tenure, the group experienced unprecedented growth, adding 10 dealerships and seven franchises. He managed corporate operations for 14 dealerships including daily operations for eight, earning the organization the designation as a Top 125 Dealer Group from 2008 through 2014.
McCarthy further mentored and coached employees resulting in a 200-percent increase in sales and F&I productivity.
“When you combine Paul’s exceptional experience in dealership management and F&I sales with his personal approach and team building skills, our sales teams have a proven foundation from which to succeed,” Atkinson said.
To cut down on paper usage and streamline operations, Auto/Mate Dealership Systems released a pair of tools on Monday aimed at helping both the finance office as well as the service and parts counter.
The first solution is the company’s eDEAL Signature Capture feature, a digital contracting tool that can allow F&I managers to capture signatures, store electronically signed documents and email digital deal jackets to customers.
In conjunction with eDEAL, Auto/Mate has also released eSign, allowing cashiers, as well as service and parts staff, to accept digital signatures from fixed operations customers.
“It’s time for dealerships to move beyond paper-based processes,” said Mike Esposito, president and chief executive officer of Auto/Mate. “Fortunately, most states, banks and auto dealer associations are finally making the legal changes necessary to enable digital contracts and forms. This is a game changer for dealerships everywhere.”
With eDEAL and eSign, customers only have to sign once, then tap to apply their signature to other required fields. When using eDEAL, the digital deal is downloaded as a zip file that can be emailed or put onto a flash drive. Signed repair orders, warranty forms and other parts and service forms can be emailed directly to the customer using eSign.
Auto/Mate explained eDEAL Signature Capture can be used on any mobile tablet and resides in Desk/Mate, Auto/Mate’s desking tool. All forms are stored as digital PDFs right in the DMS, eliminating the need for physical file storage and third-party scanning solutions.
The company went on to mention eSign can be accessed in the service merchandising or parts modules. Fixed operations employees can go back at any time and reference a list of signed documents along with an indication of whether the document has been signed and cashiered.
Auto/Mate insisted cost savings associated with digital documents are significant.
“Dealers will greatly reduce costs related to printing and storing thousands of documents, including paper form reorders, toner, storage space and labor hours associated with managing manual, paper-based processes,” the company added.
“Unlike expensive competitive options, eDEAL and eSign give dealerships the ability to use digital contracting tools with the same capabilities at a much lower cost,” Auto/Mate went on to say.
For more information visit Booth No. 2301S at the NADA Convention & Expo in San Francisco beginning on Jan. 24. Dealer can schedule a demo at www.automate.com/nada.
Pegasystems revealed results of a consumer study about extended vehicle warranties that likely reinforce the value proposition finance managers present to their customers, but also probably reiterate store frustrations over sales penetration rates for these products not being higher.
Pegasystems, a software company, said its survey revealed the majority of drivers (63 percent) do not have active extended warranties despite seeing their value. In fact, the survey showed 60 percent of participants agreed that warranties provide value, and 62 percent of consumers with active warranties reported benefitting from them within the past year.
The survey included more than 1,000 U.S.-based consumers with Pegasystems trying to answer a question that’s perplexed F&I professionals for decades. Why are so many consumers driving without extended warranties?
The company explained that its survey results reveal a clear disconnect between appreciating the importance of an extended warranty and actually purchasing one. Results showed the biggest barriers to consumers purchasing a warranty are:
— Cost (35 percent)
— Not thinking they need one (32 percent)
— Lack of availability at the time of purchase (29 percent)
Furthermore, Pegasystems noted that nearly half of those individuals surveyed (48 percent) only somewhat understand their existing manufacturer’s warranty, and 7 percent say they don’t understand it at all.
“It’s imperative that manufacturers and dealers understand these factors to better educate buyers and provide appropriate recommendations on how they can protect their vehicle purchases, as well as what’s included with that protection,” survey orchestrators said.
While it’s important to understand why people do or do not purchase extended warranties, Pegasystems suggested that dealers also should understand who is making these purchases and how they can provide more personalized recommendations.
According to the survey, younger consumers are the primary buyers with 54 percent of 16- to 24-year olds having an extended warranty, while only 25 percent of those 55 and older have an extended warranty.
Survey orchestrators mentioned generational differences also surfaced when respondents were asked how well they understand their existing manufacturer’s warranties.
Nearly 40 percent of 16- to 24-year-olds said very well, while only 22 percent of those participants 65 and older said the same.
“By understanding buyers’ needs on an individual level, manufacturers, their captives and dealers can provide better education on the warranty options that will provide the most benefits,” survey orchestrators said.
Pegasystems emphasized a suggestion perhaps already familiar to dealerships and finance companies — a collaborative approach to creating more loyal customers.
When it comes to loyalty, 54 percent of those surveyed are loyal based on a past experience with a brand, and 47 percent are loyal because of a positive experience with a dealership.
Only 28 percent answered they are loyal because of price or vehicle performance, with Pegasystems noting that the level is revealing just how much rides on the combined experience the manufacturer and dealership provide.
“A strong product combined with a quality in-person dealership experience are almost equally responsible for a customer coming back,” survey orchestrators added.
Pegasystems added that another opportunity for manufacturers, their captives and dealers lies in vehicle-data sharing.
The survey indicated that 54 percent of respondents either agree or strongly agree that they see value in a connected app experience using data from their vehicles to enhance the overall in-vehicle experience. However, many (45 percent) remain concerned about how their data will be exploited.
Combined with product quality, Pegasystems went on to note a key element consumers want in aftermarket experiences — transparency — whether it’s transparency from a dealer on what a warranty covers or how to purchase one, or transparency about how their data is used for better in-vehicle experiences.
“When it comes to aftermarket owner and user experiences, there is an urgency for auto manufacturers, their captive finance divisions and dealer partners to intelligently orchestrate the fragmented channels, processes, decisions and data necessary to cultivate more loyal customers – whether it’s helping consumers with extended warranty purchases or providing more seamlessly-connected ownership and user experiences,” said Steven Silver, vice president and industry market leader or manufacturing at Pegasystems.
“By understanding buyers’ experiences on a deeper level, the industry can provide more personalized recommendations and effortless interactions that protect customers’ automotive purchases long-term, as well as better experiences every time consumers use their vehicles and dealers service them,” Silver added.
This week, F&I Express announced that it has added Zurich North America’s F&I products to its platform of digital solutions.
The company highlighted the move can provide dealerships across the country with broader technology and innovation options for accessing Zurich’s menu of insurance solutions.
F&I Express integrates with more than 3,000 dealerships and 160 aftermarket product providers of technology, which can allow dealerships to eRate and eContract.
“The addition of Zurich to the F&I Express platform is a huge milestone for us,” said Brian Reed, president and co-founder of F&I Express. “Zurich is one of the largest aftermarket product providers, the integration will create more opportunities for both parties.”
Marie Knight, head of Zurich Direct Markets Strategic Services, added, “Integrating Zurich into the F&I Express online platform gives auto dealerships flexibility in accessing our suite of F&I products and services.
“Ultimately car buyers will have the ability to shop and purchase F&I products digitally — the way many of them prefer,” Knight went on to say.
The annual percentage rate on used-car financing in November went up more than a percentage point from a year ago, and the average amount financed climbed more than $500.
That’s according to the latest auto finance data from Edmunds, as part of an analysis that mostly focused on the new-car side but also included year-over-year and five-year comparisons in pre-owned.
The average term on used-car financing packages in November was 67.27 months, up from 67.06 a year ago, Edmunds said. The average term length was at 64.57 months five years ago.
Monthly payments for used cars averaged $409, up from $389 in November 2017 and $369 in November 2013.
Used-car buyers were financing an average of $22,004 last month, up from $21,494 a year ago, according to Edmunds. In November 2013, they financed an average of $19,795.
The APR in used-car financing has climbed from 7.66 percent to 8.69 percent in the last year, the data shows. The APR back in November 2013 was 7.68.
Down payments were at $2,643 in November, compared to $2,475 a year ago and $2,188 five years ago.
Black Friday and Cyber Monday might have already passed, but GWC Warranty contends that dealerships still can leverage consumers’ enthusiasm for spending to rake in some retail revenue via their finance departments.
“There are two ways to look at the holiday season,” the company said in a post on its blog, "Accelerate". “You can chalk it up as the slow time of year, or you can go big and use the last month to provide a jolt to the year’s profits. The choice is yours.”
With that decision ahead for dealers large and small, GWC Warranty offered four recommendations operators can try in order to breathe some life into the final days of the year.
“It’s the season for deals, giving and new beginnings, and your business is no exception,” the company said.
1. Social media advertising
If your store hasn’t tried social media advertising, GWC Warranty said the operation may be missing out on the deal of the century. Ads on Facebook, for instance, can be relatively affordable and allow you to target by age, location, gender and even interests.
“If you have a specific car for a specific audience that you need to get off your lot, social media ads might be your ticket to a quick, profitable sale,” the company said.
2. Contests
GWC Warranty emphasized that customers love to win, and they love a deal.
Promoting contests that can get customers engaged with your dealership don’t just reward the winner, but also get more foot or internet traffic for your dealership, according to the company.
“You can try discounts, free service vouchers, gas cards or similar giveaways for customers that help get conversations started during a season when they might otherwise not happen,” GWC Warranty said.
3. VSC second chance
If your customers didn’t bite on service contract coverage the first time around, GWC Warranty suggested that dealerships could try getting them back in to see if they might be interested now that they’ve been in the vehicle for a few months.
“Especially during the holiday season, you’d hate to see an unexpected repair hurt a customer’s monthly budget,” the company said. “You can use this to position a VSC as the perfect gift to give themselves this holiday season.”
4. Test a new lead tool
If this time of year is typically slow, GWC Warranty acknowledged that it couldn’t hurt to try something new.
“You can pilot the use of a tool like Covideo that uses video communication to help nurture leads and get customers on your lot,” GWC Warranty said. “Give it a shot with a few leads that come in and if it works well, you can build it into your regular processes for the new year.”
This week, LendingTree released its study on where millennials owe the most on their financed vehicles.
And as they say, everything is bigger in Texas.
The results, ranked by median balance, showed where millennials are the most and least burdened by auto debt. Metros in the Lone Star State dominated the top of the list as McAllen, Houston, El Paso and San Antonio have the highest median auto loan balances for millennials at $23,704, $20,925, $20,544 and $20,521 respectively.
Ironically, Detroit, the Motor City, had the lowest levels of millennial auto debt on LendingTree’s list with a median debt of $10,841 as well as the lowest average debt of $14,573.
After Detroit, millennials in Rochester, N.Y., Grand Rapids, Toledo, Ohio, and Cleveland carry the lowest median auto debts, at $12,165, $12,429, $12,678 and $12,717 respectively.
Meanwhile, New York and Ogden, Utah are on opposite ends of the spectrum when it comes to carrying any auto debt at all. LendingTree found that New York has the lowest percentage of millennials with auto debt at 41.5 percent while Ogden, Utah has the highest percentage of millennials with auto debt (64.5 percent).
To view the full report, go to this website.
| Rank |
Metro |
Median Auto Balance |
Average Auto Balance |
% of Millennials
Who Have a Current Balance |
| 1 |
McAllen, Texas |
$23,704 |
$31,598 |
61.2% |
| 2 |
Houston |
$20,925 |
$26,471 |
59.3% |
| 3 |
El Paso, Texas |
$20,544 |
$27,010 |
61.9% |
| 4 |
San Antonio |
$20,521 |
$25,745 |
61.6% |
| 5 |
Baton Rouge, La. |
$20,124 |
$25,732 |
58.9% |
| 6 |
Little Rock, Ark. |
$19,987 |
$25,225 |
63.3% |
| 7 |
Albuquerque, N.M. |
$19,298 |
$25,095 |
56.6% |
| 8 |
Dallas |
$19,123 |
$24,228 |
59.8% |
| 9 |
Lakeland-Winter Haven, Fla. |
$18,578 |
$23,345 |
60.3% |
| 10 |
Phoenix |
$18,568 |
$23,289 |
59.5% |
| 11 |
Tucson, Ariz. |
$18,305 |
$22,832 |
55.6% |
| 12 |
Birmingham, Ala. |
$18,274 |
$21,924 |
56.2% |
| 13 |
Las Vegas |
$18,244 |
$22,818 |
59.9% |
| 14 |
Riverside, Calif. |
$18,203 |
$22,969 |
58.9% |
| 15 |
New Orleans |
$18,160 |
$22,547 |
50.7% |
| 16 |
Jackson, Miss. |
$18,057 |
$22,136 |
53.3% |
| 17 |
Bakersfield, Calif. |
$18,046 |
$24,268 |
61.6% |
| 18 |
Honolulu |
$18,007 |
$22,386 |
52.4% |
| 19 |
Tulsa, Okla. |
$17,933 |
$22,272 |
53.7% |
| 20 |
Austin, Texas |
$17,799 |
$22,184 |
57.8% |
| 21 |
Oklahoma City |
$17,718 |
$23,088 |
58.5% |
| 22 |
Charleston, S.C. |
$17,519 |
$21,358 |
56.6% |
| 23 |
Jacksonville, Fla. |
$17,504 |
$22,538 |
60.8% |
| 24 |
Augusta, Ga. |
$17,408 |
$22,238 |
60.1% |
| 25 |
Melbourne, Fla. |
$17,307 |
$20,256 |
58.5% |
| 26 |
Atlanta |
$17,286 |
$21,511 |
53.0% |
| 27 |
Sarasota, Fla. |
$17,248 |
$21,450 |
60.1% |
| 28 |
Colorado Springs, Colo. |
$17,150 |
$22,121 |
62.8% |
| 29 |
Columbia, S.C. |
$17,123 |
$21,102 |
57.1% |
| 30 |
Fresno, Calif. |
$17,113 |
$22,205 |
54.6% |
| 31 |
Daytona Beach, Fla. |
$17,071 |
$21,475 |
61.7% |
| 32 |
Virginia Beach, Va. |
$17,031 |
$21,260 |
59.2% |
| 33 |
San Jose, Calif. |
$17,027 |
$21,020 |
51.7% |
| 34 |
Chattanooga, Tenn. |
$16,845 |
$20,307 |
55.3% |
| 35 |
Memphis, Tenn. |
$16,830 |
$20,863 |
54.1% |
| 36 |
Fort Myers, Fla. |
$16,816 |
$19,908 |
63.5% |
| 37 |
San Francisco |
$16,766 |
$21,209 |
46.2% |
| 38 |
Greenville, S.C. |
$16,640 |
$20,839 |
52.0% |
| 39 |
Stockton, Calif. |
$16,605 |
$22,171 |
57.8% |
| 40 |
Boise, Idaho |
$16,504 |
$21,721 |
59.2% |
| 41 |
Knoxville, Tenn. |
$16,392 |
$21,219 |
58.0% |
| 42 |
Seattle |
$16,376 |
$20,643 |
54.6% |
| 43 |
Tampa, Fla. |
$16,282 |
$20,488 |
59.5% |
| 44 |
Baltimore |
$16,180 |
$19,656 |
57.5% |
| 45 |
Des Moines, Iowa |
$16,154 |
$20,651 |
62.5% |
| 46 |
Washington |
$16,152 |
$20,208 |
52.5% |
| 47 |
Kansas City, Mo. |
$16,138 |
$20,091 |
58.7% |
| 48 |
Raleigh, N.C. |
$16,079 |
$19,375 |
47.5% |
| 49 |
Wichita, Kan. |
$16,036 |
$21,431 |
63.0% |
| 50 |
Nashville, Tenn. |
$16,021 |
$19,719 |
54.1% |
| 51 |
Oxnard, Calif. |
$15,951 |
$21,352 |
58.5% |
| 52 |
Orlando, Fla. |
$15,936 |
$19,733 |
56.3% |
| 53 |
San Diego |
$15,922 |
$19,899 |
55.1% |
| 54 |
Charlotte, N.C. |
$15,785 |
$20,629 |
55.9% |
| 55 |
Denver |
$15,771 |
$19,985 |
55.8% |
| 56 |
Chicago |
$15,759 |
$19,084 |
52.6% |
| 57 |
Greensboro, N.C. |
$15,736 |
$19,436 |
51.4% |
| 58 |
Pittsburgh |
$15,552 |
$19,267 |
58.5% |
| 59 |
Richmond, Va. |
$15,492 |
$19,803 |
55.3% |
| 60 |
Portland, Ore. |
$15,483 |
$19,667 |
51.0% |
| 61 |
Sacramento, Calif. |
$15,406 |
$20,130 |
52.9% |
| 62 |
Ogden, Utah |
$15,359 |
$19,743 |
64.5% |
| 63 |
Spokane, Wash. |
$15,344 |
$20,223 |
49.8% |
| 64 |
Miami |
$15,238 |
$18,798 |
54.0% |
| 65 |
St. Louis |
$15,169 |
$19,505 |
59.4% |
| 66 |
Winston-Salem, N.C. |
$15,088 |
$20,009 |
51.6% |
| 67 |
Syracuse, N.Y. |
$15,086 |
$18,423 |
61.1% |
| 68 |
Indianapolis |
$15,044 |
$19,277 |
58.4% |
| 69 |
Salt Lake City |
$15,031 |
$20,187 |
59.2% |
| 70 |
Worcester, Mass. |
$14,959 |
$18,140 |
60.0% |
| 71 |
Omaha, Neb. |
$14,866 |
$18,489 |
59.7% |
| 72 |
Los Angeles |
$14,847 |
$18,860 |
52.8% |
| 73 |
Provo, Utah |
$14,722 |
$21,004 |
60.6% |
| 74 |
Cincinnati |
$14,583 |
$18,829 |
59.8% |
| 75 |
Dayton, Ohio |
$14,502 |
$18,342 |
57.5% |
| 76 |
Scranton, Pa. |
$14,500 |
$17,988 |
54.1% |
| 77 |
Allentown, Pa. |
$14,408 |
$18,381 |
60.4% |
| 78 |
Louisville, Ky. |
$14,304 |
$18,077 |
53.3% |
| 79 |
Philadelphia |
$14,075 |
$17,176 |
52.4% |
| 80 |
Columbus, Ohio |
$14,067 |
$17,600 |
59.4% |
| 81 |
Springfield, Mass. |
$13,976 |
$17,327 |
53.8% |
| 82 |
Albany, N.Y. |
$13,789 |
$18,117 |
56.7% |
| 83 |
Harrisburg, Pa. |
$13,750 |
$17,471 |
55.5% |
| 84 |
New York |
$13,736 |
$17,073 |
41.5% |
| 85 |
Hartford, Conn. |
$13,718 |
$15,989 |
56.0% |
| 86 |
Madison, Wis. |
$13,643 |
$16,551 |
57.5% |
| 87 |
Providence, R.I. |
$13,459 |
$16,403 |
54.8% |
| 88 |
Milwaukee |
$13,356 |
$16,276 |
55.0% |
| 89 |
Buffalo, N.Y. |
$13,348 |
$17,119 |
62.5% |
| 90 |
Akron, Ohio |
$13,336 |
$16,002 |
62.6% |
| 91 |
Minneapolis |
$13,250 |
$17,053 |
52.1% |
| 92 |
Youngstown, Ohio |
$13,208 |
$16,878 |
61.0% |
| 93 |
Boston |
$13,200 |
$16,673 |
52.6% |
| 94 |
New Haven, Conn. |
$13,142 |
$15,220 |
56.1% |
| 95 |
Bridgeport, Conn. |
$12,861 |
$15,130 |
53.5% |
| 96 |
Cleveland |
$12,717 |
$15,871 |
59.6% |
| 97 |
Toledo, Ohio |
$12,678 |
$15,825 |
58.4% |
| 98 |
Grand Rapids, Mich. |
$12,429 |
$14,956 |
51.1% |
| 99 |
Rochester, N.Y. |
$12,165 |
$15,962 |
60.1% |
| 100 |
Detroit |
$10,841 |
$14,573 |
54.6% |
Source: LendingTree
AGORA Data is responding to the need for accurate information involving seasoned vehicle installment contracts.
On Monday, the secondary loan marketplace announced what that company believes is the release of the first-ever loan validation report for seasoned loans. AGORA’s proprietary technology can enable dealer and finance companies to avoid compliance issues with the Truth in Lending Act (Regulation Z), by assessing in real-time any issues with the terms of a loan, either at the portfolio or individual loan level.
AGORA indicated this analysis can include assessment of the contact’s annual percentage rate, finance charges, principal balance, total of payments, unearned interest and gross balance.
AGORA chief executive officer Steve Burke cautioned that violation of Regulation Z can lead to significant penalties and other legal issues.
“Before starting AGORA, I bought as principal, billions of dollars worth of notes from dealers, finance companies, banks and credit unions, and I cannot remember a loan portfolio that did not have problems we identified at the time of purchase,” Burke said.
“When loans are originated and boarded into a servicing system, they are most likely compliant, however, over time, payments get misapplied, side notes are created, late charges are misapplied and many more things that will take what was a compliant loan and make it no longer compliant,” he continued.
The new validation report by AGORA gives you the tools to recognize this real-time,” Burke went on to say.
Before AGORA, Burke insisted that dealers and finance companies would only find out they have a loan level compliance issue if a regulator, buyer or plaintiff attorney identified the problem. By that point, Burke pointed out the dealer or finance company is at risk of losing money, tarnishing their reputation and potentially facing serious legal ramifications.
“By ensuring ongoing compliance with the Truth in Lending Act (Regulation Z), AGORA is keeping you safe,” the company added.
Today AGORA is providing this loan validation tool for free, with no obligation, as well as loan stratifications, data security, data integrity, DMS API integrations, cash flow analysis and much more.
To take advantage of these tools, visit AGORA at www.agoradata.com and sign up for a free account.
There’s been another change in ownership within the floor-planning space.
Sopra Steria, a European leader in digital transformation, recently announced the acquisition of lending solutions provider Sword Apak, a subsidiary of Sword Group.
Sopra Steria has acquired, through its subsidiary Sopra Banking Software, 100 percent of Sword Apak, which develops specialized solutions for auto financing and asset finance.
Sword Apak currently has more than 100 clients, including major international banking groups and automakers’ captive finance companies. Its flagship offering, Wholesale Finance System (WFS), is a vehicle fleet and inventory financing solution for dealers.
Sword Apak was founded in 1979 and acquired by Sword Group in 2007. In 2017 it posted revenue of 27.5 million Euros. More than two-thirds of its revenues are recurring. Sopra indicated Sword Apak’s EBITDA came to 7.1 million Euros in 2017.
Over the past three years, Sword Apak’s compound annual growth rate for revenue has been 19 percent. As of June 30, Sword Apak had 250 employees.
Sopra Steria said it will consolidate Sword Apak into its accounts by the end of the month.
“This acquisition gives Sopra Banking Software an unrivalled position in the asset finance software market. It rounds out Cassiopae’s offering (loan financing and fleet or personal leasing) with inventory financing solutions for car dealers and other distribution networks,” Sopra Steria said.
“It also further consolidates its strong position with major groups that are already clients of the two companies by leveraging cross-selling opportunities, and provides a global, integrated, end-to-end solution covering all the sector’s financing needs,” the company continued.
“The acquisition of Sword Apak fits perfectly with Sopra Banking Software’s strategy in the promising lending market. It is also aimed at strengthening the company’s business model by boosting its share of recurring revenue,” Sopra Steria went on to say.
“As such, this acquisition reaffirms group’s confidence in Sopra Banking Software’s strategy and its capacity to address financial transformation-related challenges through its digital platform offerings,” the company added.
