A new report reveals that dealers are missing out on billions in revenue due to mismatched payment quotes—especially as affordability remains a top concern for car buyers.
The details: The report—from eLEND Solutions—indicates that the mismatch between initial quoted payment terms from dealers and lender-fundable contract terms can materially impact sales volume and gross profits.
The vast majority of dealers surveyed (80%+), report that lender-approved payments come back higher than initial quotes more often than not.
Loss revenue from the mismatches is estimated at $515,000, on average, per dealership annually.
That includes an average $237,000 in lost vehicle sales revenue, and $278,000 in lost F&I revenue opportunity.
At scale, the mismatch gap could represent $4.7 billion annually in lost opportunities for franchise auto dealers.
What they’re saying: "With the vast majority reporting that lender terms come in much higher per month than the initial quote, it is not surprising that 60% of credit applications submitted to auto lenders do not receive credit approval decisions. Car buyers are receiving inaccurate initial information that is significantly undermining the customer experience," said Pete MacInnis, founder and CEO of eLEND Solutions, per a press statement.
Why it matters: When the lender-fundable payment comes back higher than what was quoted, more deals fall out, F&I attach gets squeezed, and gross compresses. In a market where affordability is already the No. 1 reason buyers pause, every mismatch becomes an avoidable lost sale—and those “small” misses compound materially over a year.
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Between the lines: The revenue loss tied to the quote-to-terms gap is driven by several factors—including heightened pressure on dealers to show affordability that consumers can actually qualify for.
30%+ of new-vehicle deals must be re-penciled, with most dealers saying front-end gross is reduced to resolve the friction.
More than 50% of lenders no longer provide auto dealers with standard rate-sheet bulletin guidance using FICO tiers as the sole determinant of base loan pricing.
Bottom line: The quote-to-term gap is a structural revenue leak measured in billions. In a payment-sensitive market, dealers can’t afford to show numbers that won’t hold. Closing the gap between the quoted payment and what lenders will actually fund isn’t just better CX—it’s one of the fastest ways to protect gross, F&I yield, and deal throughput right now.
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