Which Lender in your opinion is the most anticompetitive when it comes to approving aftermarket products?
MY VOTE: Toyota Financial Services – will intentionally take up to 45 days to approve all ancillary providers. Then we have to listen to the DSSO tell us why we are stupid and TFS employees are geniuses.
I will second your opinion of TFS and can tell you that during my long career with a VSC administrator that Toyota was certainly the most difficult of the captives to deal with for product approval.
On the other hand, they don't hold a candle to the many subprime and deep subprime companies that require exclusive product usage. I think this will be coming under greater scrutiny these days and those companies without compliant processes and procedures around F&I product usage and funding are running increasing risks of regulatory and litigation problems.
Maybe somewhat related to this topic is the disturbing practice that is happening with greater frequency of lenders ONLY allowing the use of THEIR product. VW Credit is one of my latest annoyers, now telling us that we can only write their Lease Wear & Tear. For years, we have only been able to do their gap, so this is just their latest whack at our profits, making us buy their product at a greatly inflated price.