The Westlake Waterfall

“Can I please see a rate sheet?”
That’s usually the first thing reps hear when they enter a dealership for the first time, and rightfully so. Dealers and managers, particularly special finance managers, are busy and may have a wide range of finance companies to choose from, so looking at a company’s rate card can be one of the easiest ways to choose the right finance companies and weed out the wrong ones.

Like many finance companies, Westlake has a full spectrum of products available. At the top end of the range is the Platinum Program designed for near-prime customers. The Preferred Program fits right below that for customers with blemished, but established, credit histories. Finally, the tried-and-true Standard Program is the deepest, most flexible program available in a non-BHPH environment. A BHPH product exists too, but that’s a different story.

The Waterfall EffectSM
So back to the rate sheet question: Westlake doesn’t have one. When the finance manager starts a new deal, the Buy Program™ automatically evaluates it and places it in the proper finance program: Platinum first, then Preferred and finally the Standard Program. This automatic tier-filtering is also called the Waterfall Effect,SM and it’s designed to help finance managers structure the smartest and most profitable deal for both the dealership and the customer. 

During the Waterfall Effect, the system offers tips (i.e. “Ask the customer for $500 more down payment to make this a Preferred deal with lower APR and discount!”). This method tailor-fits each deal. There’s no need to try and peg a round customer into a square rate sheet.

The Westlake Buy Program™
Call-backs. Hash-backs. Endless waiting. You get a lot of that with many finance companies. To avoid all that, Westlake developed the Buy Program™ software that gives finance managers unprecedented control, instant approvals and the ability to roll the deal quickly. The Buy Program™ can be accessed 24/7 online via the Dealer Center Web site or as a standalone program installed as part of the Dealer Desktop® DMS software.

The finance manager can manually input a customer’s credit information along with the vehicle information or the software will automatically “read” the credit report (if the credit report is run through the system) and enter the information automatically. Then, all the finance manager has to do is adjust the car price, loan term or customer down payment to get an instant approval. As long as the bottom of the screen blinks “Yes” to the deal structure and “Yes” to the amount financed, the deal is approved.

Program Guidelines
As mentioned earlier, the Buy Program automatically places the customer into the program that will maximize dealer profit, while at the same time ensuring the customer is in the right vehicle with the right terms. The goal is to strike a balance that will keep everyone happy and ensure a repeat customer.

There are some guidelines available to help your customer get into the best program, but because the software takes many factors into consideration when calculating a “Yes – Yes” approval, the guidelines below are just that, guidelines. A customer can have all of the items listed in the guidelines below, but still be put in a different program depending on various factors, such as what vehicle they are trying to finance.

Platinum Program Guidelines
• APRs as low as 10%
• Minimum 625 FICO or 635 BCN
• Vehicle can have up to 120k miles
• Minimum income $1,500/month
• No Open Derogs
• 1 Repo is OK
• At least three years on the bureau
• Minimum two good credit items, one over $3,000

Preferred Program Guidelines
• At least 10% down
• No Open Derogs
• Minimum income $1,500/month
• 2 years on bureau or homeowner
• BK is OK
• Out-of-state drivers license is OK
• No minimum FICO
• Minimum payment of $225/month

Standard Program Guidelines
• Minimum payment of $170/month
• Any Car
• Any Income
• Any Credit
• No minimum FICO

For more information, call 888-8-YES-YES (888-893-7937), e-mail dealersignup@westlakefinancial.com or visit www.westlakefinancial.com.