Auto Finance Course

Lesson 1 • Vehicle Types and Market Segments

Differentiates new, used, and certified pre-owned vehicles and their financing implications. Segment knowledge shapes product selection and risk assessment.

Lesson 2 • The Auto Finance Ecosystem

Maps the full network of dealers, lenders, captive finance arms, and consumers. Establishes the industry context needed for every subsequent topic.

Lesson 3 • Core Terminology and Concepts

Introduces essential vocabulary including principal, interest, term, and residual value. Precise language use prevents errors throughout the course.

Lesson 1 • Income and Employment Verification

Details methods for verifying stated income across employment types and self-employment. Accurate income verification anchors debt-to-income calculations.

Lesson 2 • Credit Scoring Models

Covers how scoring algorithms convert credit data into numeric risk indicators. Understanding score ranges and factors enables precise pricing and tiering.

Lesson 3 • Debt-to-Income and Payment-to-Income Ratios

Teaches calculation and interpretation of DTI and PTI ratios as affordability measures. These ratios directly determine approval thresholds and loan amounts.

Lesson 4 • Reading and Interpreting Credit Reports

Explains the structure of consumer credit reports and how each section informs lending decisions. Accurate interpretation reduces approval errors and fraud exposure.

Lesson 1 • Term Selection and Amortization

Explains how loan term affects monthly payment, total interest cost, and depreciation risk. Term optimization aligns customer affordability with lender risk tolerance.

Lesson 2 • Down Payments and Trade-In Equity

Analyzes how cash down payments and trade-in equity reduce financed amounts and risk. Proper equity handling prevents inflated deals and compliance issues.

Lesson 3 • Fee and Product Inclusion in Deals

Covers how taxes, title fees, and ancillary products are financed within a deal structure. Accurate fee inclusion ensures compliant and accurate contract amounts.

Lesson 4 • Interest Rate Structures

Covers fixed, variable, and buy-rate versus contract-rate concepts in auto lending. Rate structure choices affect both customer cost and dealer compensation.

Lesson 1 • Residual Value Setting

Explains how residual values are determined using depreciation curves and market data. Accurate residuals protect lessors from end-of-term losses.

Lesson 2 • Lease-End Options and Obligations

Covers purchase options, return conditions, excess mileage, and wear-and-tear charges. Clear end-of-term processes reduce disputes and remarketing losses.

Lesson 3 • Money Factor and Lease Payment Calculation

Teaches money factor conversion, capitalized cost reduction, and monthly payment formulas. Mastery enables accurate quoting and customer explanation.

Lesson 4 • Lease vs. Loan Decision Framework

Compares total cost, flexibility, and risk profiles of leasing versus purchasing. Matching the right product to customer needs improves satisfaction and retention.

Lesson 1 • Indirect Lending Program Structure

Explains how dealers originate loans on behalf of lenders through dealer agreements. Understanding program mechanics enables effective partnership management.

Lesson 2 • Dealer Compensation Models

Covers flat-fee, markup, and participation models used to compensate dealers for originations. Compensation structure influences dealer behavior and compliance risk.

Lesson 3 • Dealer Onboarding and Due Diligence

Details the process of vetting, approving, and onboarding new dealer partners. Thorough due diligence prevents fraud and reputational risk from the start.

Lesson 1 • Portfolio-Level Underwriting Strategy

Connects individual deal decisions to portfolio concentration, vintage performance, and risk targets. Strategic underwriting balances growth with sustainable credit quality.

Lesson 2 • Automated Underwriting Systems

Covers how scoring models and rules engines generate automated approve, decline, or refer decisions. Understanding system logic improves override quality and consistency.

Lesson 3 • Manual Review and Exception Handling

Teaches structured approaches to reviewing referred applications and granting policy exceptions. Consistent exception handling protects fair lending compliance.

Lesson 4 • Credit Policy Architecture

Explains how lenders build credit policies using risk appetite, portfolio goals, and regulatory constraints. Policy structure determines the boundaries of every credit decision.

Lesson 1 • Post-Funding Compliance Audits

Covers internal audit processes that verify funded deals meet policy and regulatory standards. Regular audits catch systemic errors before they become regulatory findings.

Lesson 2 • Document Review and Funding Approval

Details the lender-side review of submitted contracts and supporting documents for accuracy. Thorough review prevents post-funding repurchase demands and losses.

Lesson 3 • Retail Installment Contract Essentials

Covers the required elements, disclosures, and signatures in a retail installment sales contract. Contract accuracy is the foundation of enforceable and compliant deals.

Lesson 4 • Electronic Contracting and Digital Workflows

Introduces e-contracting platforms, electronic signatures, and digital document management. Digital workflows reduce errors, accelerate funding, and lower operational costs.

Lesson 1 • Bankruptcy and Legal Default Handling

Covers automatic stay obligations, proof of claim filing, and reaffirmation agreements in bankruptcy. Proper legal handling protects lender rights and minimizes losses.

Lesson 2 • Remarketing and Deficiency Recovery

Explains how repossessed vehicles are sold and how deficiency balances are pursued post-sale. Effective remarketing maximizes recovery and reduces net charge-off rates.

Lesson 3 • Loss Mitigation and Workout Options

Covers deferments, extensions, refinancing, and voluntary surrender as alternatives to repossession. Workout options preserve customer relationships and reduce net losses.

Lesson 4 • Repossession Process and Compliance

Details the legal requirements and operational steps for vehicle repossession and notice obligations. Compliant repossession protects lenders from liability and deficiency challenges.