Offer a lower payment alternative, regardless of the vehicle cost or the rate compared to a conventional loan: This not only meets borrower needs but also positions your financial institution as a flexible and customer-focused lender in a competitive market.
Tap into a larger segment of the auto market. Most captive programs offer leasing only for new vehicles but with AFG’s programs, you can offer a lower payment option for pre-owned vehicles as well. Used vehicles are often more affordable than new models, and when paired with the lower monthly payments of residual based financing, they become even more accessible to a wider range of consumers.
Strengthen the relationship with your borrowers: AFG’s programs encourage longer-term relationships with borrowers. As borrowers return at the end of their financing term to make a decision on the residual value, your financial institution has additional touchpoints for engagement and the opportunity to offer new financing deals. This can enhance borrower loyalty and retention, key metrics for any financial institution’s long-term success.
Strengthen the relationship with your indirect channel: dealers like to have a lower payment option that helps them moved their pre-owned inventory.