Auto Lender Mix Strategy: How Many Lenders Should a Dealership Carry?
TL;DR — Quick Summary Most Canadian dealerships need a lender mix of 8 to 12 active lenders to cover prime, near-prime, and subprime tiers without leaving approvals on the table. Carrying too few lenders concentrates risk — if one bank tightens credit boxes, an entire tier of buyers gets declined outright. Carrying too many lenders […]
Alternative Auto Lenders in Canada: When They Make Sense
TL;DR — Quick Summary Alternative auto lenders in Canada fill the tier 3 and tier 4 space when prime and near-prime banks decline an applicant. They make sense when the buyer has income and intent but a credit profile a bank won’t touch — not as a default first stop. Rates from high-cost lenders can […]
How to Get Your Dealership Approved With a New Auto Lender
TL;DR — Quick Summary Lenders approve dealerships based on financial stability, sales volume, dealer license standing, and how the store handles funding paperwork — not just credit tier appetite. A complete application package — dealer license, garage registration, void cheque, financials, and a signed dealer agreement — is the single biggest factor in approval speed. […]
Dealer Reserve, Flats, and Fees: How Canadian Lenders Pay Dealerships
TL;DR — Quick Summary Dealer reserve is the spread between the buy rate a lender approves and the sell rate the dealership offers the customer, and it’s the most common way Canadian lenders pay dealerships on prime and near-prime deals. Flat fee agreements pay a fixed amount per funded deal regardless of the rate markup, […]
Credit Union Auto Loans in Canada: The Overlooked Lending Channel
TL;DR — Quick Summary Credit union auto loans in Canada often carry lower posted rates than the big banks because credit unions are member-owned and return surplus earnings to members instead of shareholders. Desjardins is not a Quebec-only lender — its auto financing network extends through Desjardins Ontario Credit Union and caisse partnerships that reach […]
How to Read a Lender Program Guide: LTV, PTI and Term Caps Explained
TL;DR — Quick Summary A lender program guide sets three hard limits — LTV, PTI, and term — that determine whether a structured deal will actually fund. LTV caps typically run 100–120% of MSRP or wholesale value depending on the lender tier, with subprime programs sitting at the tighter end. PTI ratios above 15–20% of […]
Captive vs Bank vs Credit Union Financing: How Canadian Auto Lenders Actually Differ
TL;DR — Quick Summary Captive vs bank vs credit union financing comes down to three different underwriting philosophies — manufacturer-subsidized volume, prime-focused risk models, and member-relationship lending. Captives approve fastest on new-vehicle deals with manufacturer incentives, but they rarely touch subprime or used inventory outside certified programs. Banks dominate prime and near-prime paper but apply […]