Description
Loans to auto dealerships can be risky due to the market risks associated with auto sales and vehicle collateral. Auto dealerships range in size from a single outlet to multi-brand dealership groups. With dealership groups growing nationally, local dealerships lack the financial resources to weather economic downturns. In fact, many dealerships closed their doors during the Great Recession.
With improving economic conditions and rising auto sales, institutions are reentering the business of lending to auto dealerships. Now is the time to make sure that credit analyses supporting underwriting decisions for these potentially risky loans consider the important nuances imbedded in dealership’s financial statements. It does not matter if you are lending to large dealership groups or smaller local dealers, the credit analysis fundamentals are the same.
Benefits Following this session, you’ll be able to:
• Understand the financial structure of different types of dealership operations
• Identify books and records that are unique to dealerships
• Conduct a balance sheet analysis of an auto dealership
• Perform an inventory cost analysis for an auto dealership
Who Should Attend
• Credit officers
• Loan underwriters
• Loan analysts
• Loan officers
• Anyone involved with loans to auto dealerships