2006 Non-Prime Auto Finance Benchmark

Client Need : Seven of the top US non-prime indirect auto financing providers, which included banks, bank captives and independent companies, wanted to assess the effectiveness of their operating processes and organizational models, both individually as well as in comparison to the other participants.

Solution: BenchMark formed a specialized team and developed a custom auto finance benchmark program tailored to the non-prime financing industry. This study was the first to incorporate scoreband granularity into the originations and collections metrics and included five key operational domains: Originations, Servicing, Loss Management, Risk Management and Organizational Structure. This benchmark was also the first ever to include a comprehensive competitive profitability analysis with marginal income statement ratios by scoreband.

Results: Each participant received a comprehensive report (bound and electronic) containing the comparative evaluation of each core process within each domain,  identifying both the key drivers of high process performance and high-level improvement opportunities identified at various participants. In addition, each participant received a custom report and presentation outlining specific improvement recommendations for their operations that contained multi-million-dollar opportunities for each participant.