Tax Season Observations for Sub-Prime Auto Players

Over the past decade as a lender and now vendor in the auto industry, I’ve always anticipated “Tax Time”. Thought I’d share a couple observations:

1) The season usually starts later than we think it will. This year will be no exception.

2) When it arrives, and you’ll know it has, life is euphoric.

3) It usually ends sooner than we want, or often need, it to end.

4) Keeping the business open an extra hour and paying some overtime has a great ROI.

5) Equity in your March loans can quickly disappear in October auction lanes.

6) Tax time portfolio usually underperform the overall portfolio.

7) Suggesting to customers on monthly car insurance plans that they use some of their refund to prepay at least six months out works.

8) Delinquency rates need to drop more than you think. Tax season only comes once a year.

Just some thoughts. Stay warm and enjoy the next couple months.

Bill Caan