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INDIRECT LENDING

  • Who Pays: Dealer pays the DefaultShield premium

  • How: Applied as a “short funded” acquisition fee

  • Why It Works:

  • Dealers already expect acquisition/bank fees

  • Makes loans more attractive without requiring co-signers or high down payments

  • Lenders get protection; dealers maintain profit

DIRECT LENDING

  • Who Pays: Lender pays the DefaultShield premium

  • How: Lender may charge a small origination fee (compliant with CFPB)

  • Why It Works:

  • Keeps lender in control of deal structure

  • Provides competitive terms for members

  • Adds protection while maintaining profitability

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Title
Direct Lending
Indirect Lending
GAP/VSC Integration

Fully supported

Dealer keeps their back-end products
Benefits

Control, margin, protection

Dealer buy-in, smoother closings
How It’s Paid

Origination fee or absorbed

Acquisition fee (short funded)
Who Pays Premium

Lender

Dealer
Application Source

Member applies with lender

Dealer submits deal to lender

FAQ's

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