BMO and Carfinco have entered into a new automated cascade program for automotive finance conditional sales contracts (CSC).
The move will see BMO’s declined CSC be redirected through Dealertrack to Carfinco for immediate review.
According to a release sent to dealers in late February, a credit decision will normally be provided to the originating dealer within 10 minutes.
“The BMO and Carfinco partnership was developed in response to dealers looking for easier and faster ways to have an approval on their desk,” Ray O’Kane, V-P of OEM strategy and development at BMO Automotive Finance, told Canadian AutoWorld.
“By sending deals directly – and first – to BMO, we will try to see if we can a make the deal work. But in those cases where it doesn’t fit within our credit appetite, Carfino will work quickly to get an approval to the dealer under one of their many programs, without the dealer having to any additional work.”
The program is currently being rolled out and is expected to take two months.
Current BMO or Carfinco customers require no action to participate. Reps will notify dealers when their dealership is live on the cascade program.
This is the latest enhancement to Carfino’s lending model as it works to move up the risk curve. The company now offers rates as low as 8.99 per cent, terms up to 84 months and bi-weekly payments.