For decades, indirect auto lending has allowed customers to quickly and
conveniently finance their vehicles without the hassle of going from bank
to bank to apply for auto loans. However, it isn’t just the end-consumer
who benefits from indirect lending, dealerships have experienced a significant
benefit from this convenient practice as well. With incentives such as
dealer participation rates, indirect lending has become an extremely lucrative
practice and an absolute must-have for any dealer who wants to be competitive
and successful in today’s market.
In recent years, there has been an increased focus on the indirect auto
lending industry and the consequences that incentives like participation
rates and limited dealer oversight can have on the end-consumer. A focus
on discriminatory practices and disparate impact have grown to the point
where Congress is being urged to increase the oversight authority of the
Consumer Financial Protection Bureau (CFPB) to include auto dealers using
The days of “hands-off” management and oversight of auto lenders’
dealer networks are in the past, with growing expectations that dealers
are treated very similarly to auto lenders’ vendors. Actively implementing
the steps outlined in this white paper can bring benefits that will far
outweigh the costs of non-compliance.
Download the white paper
The Rapidly Changing Landscape of Indirect Auto Lending to learn about the origination aspects of auto lending, the ongoing debate
over dealer participation rates, disparate impact and discriminatory practices,
effectively managing a dealer network and discriminatory practices in
aftermarket product sales.