Frequently Asked Questions
General FAQ
Reposessions FAQ
Administration FAQ
Collections FAQ
Deal FAQ
General FAQHow long has Source One been in business?
Source One has been in business since 2000, and during that time we have funded more than 10,000 loans. Our staff has more than 200 years of combined experience in the sub-prime finance industry.
Why should you do business with Source One?
We have a program that maximizes your profits and help you sell more cars. We have been successful in showing hundreds of dealers how to sell more and make more. Source One has the state of the art technology, including a specialized database allowing for weekly payments, a telephone system that allows consumers to check balances 24/7 and can make up to 4,000 outbound collection calls per day. Source One also has a large dedicated and professional staff, and a history of exceptional collections and earning profits for our dealer/partners.
How does our partnership work?
The dealer enters into an agreement with the Consumer to sell them a car and to accept payments over time to pay the balance. Source One then buys the loan from the dealer at a discount and retains the right to resell the loan to the dealer if the consumer fails to pay the debt. Source One works closely with the dealer to collect money from the consumers. Source One is lending the money to you, and we work closely with you to collect from the consumer.
How are we different from competitors?
Source One truly believes we are in a partnership! If repossession takes place we decrease our acquisition fees, we put the vehicle back on your lot and give you 30 days to pay. Further, Source One never reports repossessions of your customers on your personal credit history like many of our competitors.
Reposessions FAQ
What is the Average repossession statistics?
- 85% of our repossessions start out as loans with less than 25% down payment.
- It takes our asset recovery department on average 7 business days to repossess a vehicle.
- The consumer redeems 50% of repossessions.
- 65% of repossessions have a significant problem with the vehicle
(if it is not running the consumer will not pay.) - We find over 99% of the vehicles assigned for repossession.
What happens with repossessions? - The consumer has a redemption period of up to 21 days to cure the default on their loan. They must make loan current, prove insurance, and pay repo fee to redeem the vehicle.
- You are notified when the car is assigned for repossession, and again when the car is not redeemed and made available for you to pick it up at the repo yard.
- You have 30 days to redeem the vehicle.
- You have 30 days to pay Source One Financial back the advance on the vehicle.
What is the average cost of a Repossession?
Every repossession picked up the end of the redemption period will cost a maximum of --#--250.
Administration
How do I sign up?
You must meet with an account manager and complete the dealer agreement. We will consider your credit as well as the credit of the dealership. Although we are liberal in allowing credit your history speaks volumes, and we will determine an appropriate credit line.
What is a personal guarantee?
We are extending credit to you, not the consumer. Therefore we are seeking a personal guarantee that will ensure you will be there with us to collect these funds and stand behind the vehicles. Today, 65% of defaults are caused by vehicles that are no longer running, and defaults increase significantly when the dealer ceases operations.
What type of reports will I receive?
You will receive bi-monthly dealer activity reports, and a monthly dealer statement outlining every transaction that takes place in your account, or any of you loan portfolio.
What can I expect from my representative?
Your account manager is there to help you will all of your sub-prime needs. They will advise you on deals that fit our program. We have an account manager in your local area.
Collections FAQ
What is average collection rate?
Source One is proud to report that 82.5% of all loans are current, and that 92% of all loan eventually pay in full.
What type of reports will I receive?
You will receive a bi-monthly dealer activity report outlining your loan portfolio, current status, and collections on your accounts. This report will also give you the ability to connect with consumers to keep them up to date.
What does Source One do to collect loans ?
- Daily phone calls
- 10 Day Past Due jeopardy Letter
- 21 Days Notice of Intent to Repossess (certified mail)
- 42 Days Repossession assignment
- Post repossession, account referred to legal counsel for collection action
We take collecting your money very seriously!
Deal FAQHow is the advance calculated?
The Average advance is 65% of the amount financed, subject to a maximum of NADA Loan Value.
How do I get my money?
You receive two types of payments from Source One Financial. When the loan first funds you will receive the proceeds of the loan advance. After Source One collects payments on the loan advance you will receive the balance of your Dealer’s Reserve, also know as the backend, on a monthly basis as it is collected.
What is the average life of loan?
The average loan is originally signed for two years, but usually pays out in 13 months.
What is the acquisition fee?
The acquisition fee is how Source One makes our money. This fee, which covers the cost of serving the loan, statements, and collections, is a discount we take when we purchase the loan from you. Remember that when the loan is first signed it is between you and the customer; Source One then buys this loan away from you at a discount, known as the Acquisition fee.
What is VSI?
Vendor Single Interest Insurance (VSI) is a policy purchased at the beginning of any loan that ensures that if the car is uninsured at any point during the loan, that damages will be repaired, or the loan paid off if the car is repossessed. In other words VSI ensures the car always carries collision insurance.
Can we finance warranties?
Yes, subject to the same advance policies as the vehicle.
What is GAP and can we finance it?
GAP insurance is purchased by the consumer to ensure that if the vehicle is destroyed and conventional insurance does not pay off the loan balance the GAP Insurance will pay off the full note balance. And yes we finance GAP insurance subject to the same advance policies as the vehicle.