Higher Yields

With residual based financing, your financial institution earns a higher yield because the loan amortizes to the residual value, producing higher average daily balances. Offering this option can produce a greater return and help boost your financial institution’s profitability.

AFG’s CFO provides a detailed ROI analysis for AFG’s residual based financing program, from a total auto loan portfolio and per unit basis, showing the additional income the programs provide compared to conventional auto financing.

Vermont FCU has seen a clear financial upside with our program: their average balloon loan is nearly double the amount of a traditional auto loan—$30,000 vs. $16,000.