How to Calculate a Loan Amount That Is Right for You
When Calculating a boat or RV loan amount, there are a number of factors to consider. Debt to income ratio, payment to income ratio, credit history, and installment loan history. All of these play an important role, and Finance Solution is particularly adept at getting loans approved. This fact is good news for both dealerships and customers.
Factors at Play in Our Loan Amount Calculator
Our loan amount calculator is designed to provide an estimate of your monthly payment. How do you know what you can truly afford if you don’t know what is going out the door every month? However, “what you can afford” is more than just a subjective question.
The expert team at Finance Solution uses three main factors to determine if a loan can be approved. With this information, we can approach a range of lenders and find the best rate and terms possible.
These factors include:
Debt to Income Ratio (DTI) – This refers to a potential buyer’s current debt load as a percentage of their total income. This rate is used to determine if the loan on a new boat or RV would be sustainable on top of other debt you may have, including credit card debt, student loan balance, home mortgages, car loans, etc. Typically, this rate is no greater than 40%.
Payment to Income Ratio (PTI) – This rate is simply another way to look at a potential buyer’s financial situation. Instead of total debt being taken into account, like with DTI, PTI is a rate that balances a potential buyer’s monthly debt payments versus their monthly income. Ideally, an acceptable PTI would be no more than 10-12%.
Installment Loan and Credit History – Most people are familiar with the concept of a credit score, but Finance Solution digs into the data to determine whether or not buyers can qualify for loans. The end result is that we can often secure 20% more approvals than finance departments or other outsourced providers.
Our strategy, in the end, is advantageous for both RV and boat dealerships as well as their customers. For dealerships, more approvals mean more units moving off of the lot. Approvals also lead customers to have a favorable opinion of their dealership, encouraging the mentality that “that’s the dealership that gets it done.”
For customers, timely and efficient loan approvals mean that their adventure can get started that much faster. Plus, by ensuring they have received the very best rates possible, the purchase of a new RV or boat—no small investment—is far more sustainable.
20% More Approvals
The experts at Finance Solution aren’t the only ones in the industry, of course. F&I professionals work for dealerships, lenders, and independently all over the country.
So, what makes us different? Why would an RV dealership decide to hire us as their outsourced F&I department? There are a myriad of answers, but one stands above the rest:
Finance Solution has a proven, documented track record of securing 20% more loans than other providers. When we first begin working with a new dealership, we’ll ask to take a look at some of their old loan applications that were denied, then show how we could have gotten them approved. Typically that would result in about 20% more approvals.
Consider that for a moment. More units moved off your lot, higher growth for your entire dealership, potentially enough to mean the difference between long-term success and the closing of your doors.
More Than Increased Business
Aside from making it easy to calculate your customers’ ideal RV or boat loan amount, giving you more approvals, and boosting your business, Finance Solution can actually save you costs as well.
As a total provider of F&I services, we’re taking the responsibility to ensure your customers are fully financed, adequately insured, and buying the right warranties. Your role then is what you do best: moving units.
Put another way, we’re eliminating the need to hire expensive in-house financing staff. Salary, benefits, and recruiting costs can all be eliminated and invested in other areas of your dealership. All of that said, our partners don’t need to worry about the team being distant or isolated from your dealership. We’re working closely with our partners because their success is our success. You only pay us when you make money.
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