Having a lending partner that caters to the bankruptcy niche is critical to a special finance department’s success. In fact, many bankruptcy lending specialists not only survived the downturn, but they are coming on strong this year. They pulled it off by focusing less on credit scores and looking for stability and at least some good payment history before the customer entered bankruptcy.

“Our dealers know and understand who a ‘Friendly’ customer is and take full advantage of the unique niche we have in this industry. We differ from other subprime lenders in that we focus on open bankruptcy customers. We give our dealers the ability to get their customers on the road before their competitors even get the opportunity to seek financing.”

—Steven Pittler, president, Friendly Finance Corp.

“The open bankruptcy market has been our primary focus; however, we have positioned ourselves to be competitive in the non-bankruptcy market as well. With the exception of the beginning of 2009, our underwriting criteria have remained relatively consistent, and we will look for ways to increase market share while maintaining our core disciplines.”

— Scot Seagrave, senior executive, Prestige Financial

“Last year was a very challenging year for all of us in the auto finance industry. I anticipate things will continue to improve in 2010, and that it will present numerous opportunities for those dealers and lenders who have survived the last 12 months. The credit markets are beginning to open back up and we are beginning to see signs of many lenders getting back into growth mode.”

— Chris Lewis, marketing director, Tidewater Motor Credit