A Quebec-based financing company is helping dealerships boost sales by taking advantage of the non-prime market.
The ripple effects of the pandemic extend well into the many branches of the automotive sector — including auto financing, where companies are drafting programs to offer guidance to dealerships on how they can take advantage of the growing non-prime market.
One such company is Quebec-based Iceberg Finance, which recently expanded into the Maritimes and Ontario with the goal of helping to restore debtor-owed credit and facilitate transactions for dealerships so that they can increase their revenue in this area, according to Réal Breton, CEO and Founder of Iceberg Finance.
“We have a lot to offer to help our customers close more deals,” said Breton in an interview with Canadian auto dealer. “We have a unique auto financing program and we also offer a cash loan program called IF Xpress that provides loans between $1,000 and $7,500.”
Iceberg Finance was founded in June 2012 and initially focused on financing insurance products such as credit and replacement insurance, as well as extended warranties on a separate loan. But soon after, the company extended its services to include non-prime auto financing — a key area in the market for dealerships to focus on.
As for its IF Xpress program, it can be used for down payments; to cover negative equity; to help maintain the profit margin of a transaction; to finance the sale of parts, accessories and equipment; to finance vehicle repairs, and also recreational and leisure vehicles — among other things.
The company also offers other programs, such as one to finance insurance products or extended warranties on a separate loan.
Another program rewards customers with good paying habits by reducing the balance owed on their current loan, among other things. For dealership clients, Iceberg Finance also created a rewards program — one that provides them with free payments they can distribute to future customers when they reach a certain level of monthly sales.
As for what the future may hold, Breton said they are looking to expand throughout the rest of Canada.
“We created a very specific plan — we don’t improvise. Our business plan has been approved by our board of directors and we will start with these provinces (Ontario and the Maritimes), which represent a huge market,” said Breton. “We are very confident about the future.”
As for what the future may hold, Breton said they are looking to expand throughout the rest of Canada. “We created a very specific plan — we don’t improvise.”
Now is a key time for businesses like Iceberg Finance to expand — particularly as the near- and non-prime market continues to heat up. It is also a time for dealerships who are not yet dipping into that segment of customers to reconsider their own game plan.