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Direct Auto Loan Program Overview Effective October 1, 2008 COLUMBUS FINANCE INC. SINCE 1960 Columbus Finance Incorporated has been in the sub-prime auto loan business since 1960. We pride ourselves on the prompt friendly service that has made us a Columbus favorite. We treat your customer with the respect and attention they deserve, developing loyal relationships and referrals for both of us. CFI is small enough to consider each deal on its own merit – not just a number in the system. Below, you will find an overview of the general qualifiers that contribute towards an approval. CFI CUSTOMER PROFILE The common CFI customer has experienced prior credit problems that may include bankruptcy, repossession, charge-offs, collections, judgments and liens. These problems will have been situational and will not reflect a chronic unwillingness to pay their credit obligations. We look at the customer’s recent history (approx. 3yrs) for positive repayment characteristics. The customer will have a three year history of applied-for credit in the credit bureau with at least one installment loan and an opening date one year prior to the date of the application submitted to us. The applicant or co-applicant must be the person who will be driving the vehicle (no straw purchases) with the exception of an under contractual age child. The primary buyer should always be the first applicant. Residence Stability Generally, an applicant will have a minimum of three years at their current residence or a three year history in the same area. Employment Stability An applicant must be a permanent W-2 / 1040 employee with a minimum three years at the current job or three years in the same field with no major job time gaps. Employment must be verifiable (no cell phones). Seasonal or temporary employment is not acceptable to CFI. Joint / Co-Applicants CFI does not accept co-applicants on applicants that do not qualify due to chronic derogatory credit reasons. Joint / co-applicants must be insured. The primary buyer (person driving the vehicle) must be first on the application. Auto Insurance Full coverage auto insurance is required on all auto loans with a maximum deductible of $500.00. The loss payee on direct loans will be: Columbus Mortgage Inc. 3050 East Main Street Columbus OH 43209. BUDGET & CREDIT Budget calculations are calculated using gross monthly income. Housing CFI recognizes three housing categories; Rent, Own, and Other. The actual amount listed on the application or credit bureau will be utilized during credit review for those who rent or own. A minimum amount of $250.00 will be used for those choosing the “other” category or if no indication is given at all on the application. Open Obligations Generally, there is no maximum debt ratio – although each applicant must be able to demonstrate their ability to repay the debt. CFI does calculate a payment to income ratio and practices due diligence when assessing debt burden. On open obligations, CFI uses the reported payments on the credit bureau for review purposes. In the case of empty payment fields, 3% will be used on revolving accounts and 1% on Mortgage accounts. An account is considered open if it has been reported as such within the last six months. Credit Score CFI does not have a minimum credit score requirement Delinquent Credit, Collections, Charge-offs, Bankruptcy, Repossessions, Foreclosures, Judgments & Tax Liens CFI recognizes that bad things can happen to good people. Credit problems should be situational in nature. Chronic unwillingness to pay will not be accepted. CFI focuses largely on the customers recent pay history over the past three years. Bankruptcies will be discharged, foreclosures will be finalized, and repossessions will be older than one year and the applicant will be able to prove efforts being made to resolve any deficiency. Major derogatory credit included in a bankruptcy will be considered on a case-by-case basis. CFI will not accept co-makers with a repossession on their credit file. Credit Counselors Generally, credit counseling should be completed in order for the applicant to be considered. Student Loans Columbus Finance will not consider student loans for the purpose of evaluating the amount or performance of credit (positive or negative). CFI will include the payment amount if account is open with balance when considering debt burden, even if the loan is deferred. DEAL STRUCTURE Columbus Finance will consider automobiles ranging in age from 19yrs. old to current model year. See your current rate sheet for details. Collateral Value CFI uses NADA used car guide. We use both the NADA Official Used Car Guide and the NADA Official Older Used Car Guide. Generally, we advance a % of NADA loan or trade value. From time to time we may offer other programs. Consult your most recent rate sheet for details. Although there is no maximum mileage, the mileage, vehicle type and credit quality must make sense. Vehicles Not In Book If two concurrent prior model years exist, CFI will take the difference between those two model years and add that amount to the prior model year’s loan value to arrive at the current year loan value. If the vehicle is current model year used and has no book or prior book, CFI will calculate 95% of factory invoice minus 1% for every thousand miles on the odometer to ascertain a loan value. Ineligible Vehicles Branded titles (Gray market, TMU, Flood Damage, Salvage), Defunct manufacturers, and Commercial or Agricultural vehicles. Credit Insurance and Service Contracts The independent auto dealer program is a direct loan program. Since the loan is closed at CFI, credit insurance and service contracts will be offered at the closing by CFI. Down Payment Generally, down payment is not required provided the amount financed does not exceed the approved amount. Monthly Payments Prior to closing, CFI will establish a payment amount with the customer. For estimation purposes, go to: columbusfinance.com/cfipaymentestimator.html for a handy payment estimation tool. STANDARD DOCUMENTS & STIPS CFI keeps dealer relations simple and hassle free. Dealer documentation is kept to a minimum so that you can focus on selling cars. The only documents that CFI needs from you are: 1. A complete credit application (download one at columbusfinance.com/dealer.html) 2. Complete Purchase Order 3. NADA Book Out Sheet (Or complete description including VIN, Miles, and Adds. That’s it! Have your customer call us to schedule their closing! Upon approval and prior to loan closing, we will obtain proof of insurance, income, copy of driver’s license, and 4 complete references from the customer. The dealer is not responsible for this task. FUNDING CFI will exchange a check - for the full amount financed - for title at our office. Lien holder will be: Columbus Mortgage Inc. 3050 East Main Street Columbus OH 43209. FEES, SET-UP COSTS, & DEALER AGREEMENT NO Fees, NO Set-Up Costs, NO Dealer Agreement! – NONE.
