fueling the demand for residual based...

Fueling The Demand For Residual Based Financing

[email protected] | www.autofinancialgroup.com

As the number one residual based financing company in the U.S. for cars, trucks and SUVs, Autoflex Leasing enjoys a tenured, 33-year history with strongholds in Texas, Oklahoma and Arkansas. With a relevant approach to client relationships, the Autoflex platform involves knowledge and experience with diverse financing options. Autoflex clients include: nine state and medical associations, professional baseball and basketball athletes and The National Football League Players and Coaches Association.

Change, an inevitable part of business

Financing, as it relates to the auto industry, gives credibility to this evolutionary fact. The sequel to the heightened popularity of residual based financing was economic dormancy from 2008-2010. This recession surprised even the most astute professionals within the auto industry. Just ask David Blassingame, Managing Partner of Autoflex Leasing. According to David,“… the recession led to a mass exodus of banks offering residual based financing. With the demise of these lending alternatives, we were left with a major void in consumer offerings.”

When David talks about changes within the auto industry, he states, “Post-recession, residual based financing has become the most aggressive lending option. The amenities include:

Fueling The Demand ForResidual Based Financing

balloon specific products through our Flex Buy Program, reduced payments (significantly less than traditional retail payments) and regular trade-ins.”

Autoflex Meets DrivingSense

With the strategic Auto Financial Group (AFG) alliance, Autoflex has experienced increased sales of 10-15% with balloon notes. According to Blassingame, AFG’s DrivingSense program is the catalyst for an average of 50 balloon-funded transactions per month. With program-eligible vehicles, consumers get what they want, while lenders enjoy higher yields. As David says, “It’s a sweet spot in the program. You only pay for the part of the car you’ll use.”

The Autoflex/AFG partnership filled a void and David Blassingame has never looked back. The alliance created immediate access to specialized technology for David’s dealership and financial flexibility for the Autoflex consumer.

AFG’s platform is formidable because their programs and technologies are designed for today’s buyer and marketplace. As the go-to source for awareness and education of financing options, AFG is driven by results. David continues the conversation by saying, “The use of AFG’s Dealer Inventory


Download (DID) provides one click access to our entire inventory of vehicles. Sales professionals have the tools to match customer needs, payment requirements and vehicle availability at a glance.”

The AFG process is flexible and easy to use, and Autoflex has been the beneficiary of these offerings. Consumers have financial flexibility, and lenders receive a higher yield. The Autoflex result: increased savings and heightened customer satisfaction. From due diligence to closure, Autoflex has complete and ongoing access to AFG’s expertise and technology. On-site training conducted by hands-on, seasoned professionals is part of the AFG concierge experience.

With a proactive posture for end-of-term alternatives, AFG reaches out to its clients in the last 12-18 months of the loan term. This provides customers with a detailed analysis of their options based on contract terms. Buyers can purchase, trade, sell or relinquish the vehicle at maturity.

Change is inevitable. As residual based financing continues to attract a significant market share, adaptability is key to sustainability. With a commitment to both the process and the outcome, AFG continues to provide premier customer service. The ultimate endorsement comes from David himself, “We have nothing comparable to the AFG product.”


Residual Based Financing for Every Make and Model of Customer

Transformational. Transactional. Transparent. AFG is a leader in the industry focused exclusively on web-based vehicle financing solutions for lenders and dealers. With an expansive portfolio of financing options, AFG offers the DrivingSense program which includes internet-based software that makes it easy for dealerships and lenders to offer a branded balloon loan option to their customers.

The DrivingSense program:

1. Guarantees the predetermined residual value of the vehicle while eliminating the red tape involved in the disposition of the vehicle at the end of the contract

2. Allows current year, future year and up to five years used vehicles on the program

3. Provides dealers with a great certified pre-owned financing option

4. Gives lenders a great way to differentiate their indirect program from the multitude of financing options available to dealers.


In lieu of leasing, balloon lending is attractive to many consumers because buyers avoid the initial cash outlay, enjoy lower monthly payments, retain the title of the vehicle and choose an end-of-term option that includes the choice to relinquish the vehicle and walk away. This offering is compelling to customers who trade vehicles every 3-5 years. They keep the vehicle for a specific number of years and miles. Surrender the vehicle or make a final loan payment ... this type of freedom enhances the consumer/dealer/lender relationship and is one component responsible for the landmark rise in the residual based financing market. Consumers can win but they can’t lose!

In 2013 and 2014, there’s been an epic increase in leased vehicles. Specifically, 28% of new vehicles sold in the U.S. last year used some form of residual based financing. According to Edmunds.com, leasing is more popular than ever, after dropping in 2003 and again in 2009. The site further notes: The price advantage is clear. The difference between the average monthly finance payment and the average residual based payment is greater than at any time since Edmunds started keeping those records.

There’s more. Because change drives the auto industry, AFG is uniquely positioned to offer a credible alternative in the form of residual based financing and a competitive advantage which


transcends the traditional loan process. AFG products have simplified the balloon note process, providing clients a detailed and transparent analysis of options. Consumers are empowered with alternatives and the ability to make an informed decision. There’s literally something for every make and model of customer.


Auto Financial Group (AFG), a Houston-based company, provides an online, residual based, walk-away vehicle financing product called AFG Balloon Lending, as well as vehicle leasing and vehicle remarketing to financial institutions across the United States.

AFG’s residual based financing solutions provide the advantages of lower payments, flexible terms, in the case of the balloon loan, actual ownership of the vehicle and several end-of-term options, including the option to surrender the vehicle and walk away in lieu of paying the final loan payment. The financial institution receives higher loan yields, a competitive residual based financing alternative, and AFG manages the entire end-of-term process.

The AFG Remarketing program is a proven solution for financial institutions that offers the greatest financial return to their clients by matching assets to the selling network with the greatest number of buyers. While competitors use a centralized approach to liquidate assets, AFG uses selling networks ranging from traditional auto auctions to direct wholesale to internet selling platforms.

For more information about AFG call toll free at 877-354-4234, or visit www.autofinancialgroup.com.

About Auto Financial Group

fueling the demand for residual based...

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