Since 1991, Lenders Option Corporation (LOC) has provided unique automobile loan programs to increase loan volume and finance income, and to improve the yield and profitability on loan portfolios.
More than 100 lenders in 25 states participate in LOC Protection and Super Non-Lease.
LOC Protection is applied to C & D tier loans according to the lender's loan policy. The program reduces losses on repossessed vehicles by purchasing vehicles at consistently higher values than auctions or bids. To further reduce deficiency loan balances, LOC provides a principal balance reduction payment.
Super Non-Lease is a balloon loan that allows lenders to compete with dealers' leases. The program provides borrowers with low monthly payments based on LOC's residual values for vehicles. At the termination of the loan, borrowers have the option to payoff the loan, refinance the loan, or turn-in the vehicle for purchase by LOC.
Both programs are straightforward and easy to implement.