Sub-prime Auto
Contract Financing
Access Funding Center, Inc.
provides a consulting service for companies wishing to sell
their sub-prime auto contract portfolios to enhance their
cash flow. Access Funding Center, Inc. can access
several funding sources with varying degrees of interest in
purchasing auto contracts depending on the types of
contracts and the geographical location of the customers.
Some of the funding sources are also interested in
establishing auto dealer agreements to fund new auto
contracts. Portifolios of $200,000 or more and
dealers with fifteen or more contracts per month may be
eligible for this service.
In considering the acquisition of an existing auto contract
portfolio, the price paid will vary based on many factors
such as: the age of the contracts(seasoning of three months
or more is preferred), the quality of the contracts, the
interest rate, the vehicle value as compared to the
remaining contract balance, the underwriting criteria, and
the consistency of the underwriting as well as many other
factors.
The funding sources look to yield in the range of 18% - 20% on the
funds they invest. Some sources will pay 90% and higher of
the net principal loan amount while others will pay as low
as 50%. The median price range is 55%-75%.