Independent Dealers Looking for Indirect Lending: Start Here

By: Web Finance Direct

Does your independent dealership offer indirect lending to your customers? The contemporary market thrives on fast, convenient solutions, and in the realm of vehicle purchases, flexible financing is no exception. According to a 2023 report from MIT, there are over one hundred million auto loans currently in the U.S., with a combined value of roughly $1.5 trillion. This has become an increasingly valued selling point for consumers, and if you don’t offer some sort of financing—whether that’s direct dealer financing or indirect financing—you may lose business to your competitors who do.

Whether your dealership specializes in auto, RV, marine, or powersports, indirect lending is a powerful offering for independent dealers, and it may very well give you the edge over your competitor next door. Beyond staying competitive, what are the other benefits of indirect lending for independent dealerships? Let’s break them down.

Benefits of Indirect Lending for Independent Dealers

The popularity of indirect lending is driven by its convenience for consumers, giving them the ability to buy large assets like cars, RVs, boats, and more while receiving loans that meet their unique financing needs. This style of lending is an excellent solution for independent dealers who may lack the resources to offer in-house dealer financing but still want to offer financing options to customers. Here are some perceived benefits of expanding your indirect lending options through a trusted partner like Web Finance Direct, as opposed to other auto finance companies for independent dealers.

Offer Better Rates

70-80% of the total volume of vehicle financing comes via indirect lending for a reason. Through indirect lending at independent dealerships, customers can choose from a number of different financing offers, allowing your dealership to offer more varied and approachable rates to your customers. This becomes particularly beneficial for independent RV, marine, and powersport dealers who aim to provide attractive rates to their customers. 

Reduce Overhead Costs & Increase Profits

Looking to offer full F&I services at your independent dealership without incurring all the additional overhead costs? Indirect lending for auto dealers from Web Finance Direct gives auto, marine, RV, and powersport dealerships access to an expert F&I team without having to pay for an in-house one. Not only can this reduce your total costs, but it can also help your dealership drive additional profits with minimal effort through back-end offerings such as gap insurance and warranties. Having the ability to offer these kinds of back-end offerings unlocks new financial opportunities since dealers receive a portion of the profits generated by each back-end sale.

Serve a Broader Consumer Base

In addition to offering better rates to consumers, leveraging indirect lending for independent dealers also allows them to serve a wider range of customers. According to NerdWallet, the average FICO score for used car loans in the U.S. is 638. Through independent auto dealer financing, however, dealers have more ability to provide collateral to those with subprime credit. Because indirect auto dealer financing companies like Web Finance Direct have qualified networks of lenders, they’re able to provide lending options to even those customers who typically find it difficult to qualify for loans at dealerships as their options are limited. The same goes for marine, RV, and powersport dealerships. This is a huge advantage when it comes to serving a wider range of customers. 

Better Customer Service

Indirect lending allows independent dealers to spend more time focusing on the tasks that are most important to them. Among these is providing top-notch service to customers. By outsourcing your F&I services, your dealership can focus on enhancing the customer experience – a crucial factor in customer retention and loyalty, especially in the RV, marine, and powersport markets.

Even better, Web Finance Direct now has a mobile and desktop app for dealership loan applicants, allowing dealers to quickly see the status of all applications, important applicant information and documents, and other relevant information. On the other end, this tech allows you to put your customers first by providing them with a smooth, user-friendly experience through our mobile app, where applicants can easily upload documents from their phones when trying to get a loan for a new car, RV, boat, or power sports vehicle.

To discover more of the advantages of indirect lending for independent dealers and businesses of all types, check out our list of benefits here.

How to Decide on an Indirect Financing Service 

There are tons of financing companies out there that offer indirect lending for independent dealerships. So, what should you be on the lookout for?

A Good Track Record with Profitability

Many financing services focus on their own profits and take a substantially larger share of profit than the dealers they serve. Financing services with a bigger emphasis on profitability for the client tend to be more trusted by dealers.

A Variety of Products and Services

The best indirect lending services for independent dealerships typically offer a wide range of products and services within their system, such as full F&I for auto dealerships, and correspondent lending for RV, marine, and powersport dealers. This helps independent dealerships remain competitive in the marketplace while boosting profits and providing a win-win experience for everybody involved. With the recent shifts to remote work and the revitalization of domestic travel over the past couple of years, the RV market is one industry in particular where variety is proving to be quite advantageous.

Prime and Subprime Options

Dealers that are able to direct customers to prime, mid and subprime loan options could sell to a wider range of potential borrowers. With the right indirect lending partner, dealerships can connect with super-prime, prime, near-prime, mid-prime, and subprime consumers. This keeps your dealership flexible and able to serve more customers while being able to more easily adapt to changing markets. By choosing a lender that offers both, you set your business up to withstand the test of time.

Web Finance Direct Checks the Boxes

Ready to take your independent dealership’s indirect lending to the next level? Web Finance Direct’s indirect lending for independent dealers allows you to readily provide customers with financing options that work for them. 

Expand your access to more lenders through our qualified network, access competitive rates and terms, discover our back-end product offerings, and, most importantly, increase your bottom line.

If you’re an independent dealer in need of premium indirect lending and F&I services, Web Finance Direct is the company you can trust. Want to learn more? Connect with us today.


What is an indirect dealer loan?

Instead of a direct loan, which is offered to borrowers directly from banks, credit unions, or dealerships, indirect dealer loans are typically facilitated by third parties that connect dealers with lenders.

What is an example of indirect lending for independent dealerships?

An example of indirect lending at independent dealerships would be a customer agreeing to buy a used car, submitting their information through the dealership, and gaining access to a variety of loan options that are available through the indirect lending company’s network. The consumer makes a choice, the paperwork is completed by the indirect lending partner, and the sale is completed.

What are the types of indirect lending?

Indirect lending includes various types such as retail installment contracts, leases, and closed-end and open-end credit.

How does an indirect loan work?

After selecting their desired purchase, potential borrowers submit their loan application, choose from a selection of approved loan offerings and rates, and then pay off their loan in the agreed-upon timeframe.