Alternative Deal Structure for Auto Finance

Exceed your automotive finance portfolio objectives using optimization science.

Car in parking lot
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Align every offer to your portfolio goals

Nearly 56% of global auto finance customers will consider more than one source of financing before they make a final decision. When presenting a customer or prospect with loan or lease offers, it's more important than ever to deliver fast, highly compelling offers that not only impress the customer and achieve a high win-rate, but also align to your portfolio objectives and meet all regulatory requirements.

Auto finance

Optimize for outcomes such as profitability or return on equity

Compelling, optimized financing offers delivered at the speed of digital or on indirect lending channels must avoid manual "rehashing" to be successful. Using FICO's advanced analytics, we can partner with you to improve automated approval rates and gain the competitive edge.


Alternative deal structures are helping convert missed opportunities into deals that maximize profitability. Revenues are also increasing, based on improved loan-to-value rates, multiple payment lengths and specific terms.

Captive auto lender
Global auto company

Enabling Technologies

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Data, numbers and statistics

See how FICO helps deliver real business results and better customer experiences for leading organizations across industries and around the world.

12 Million

Using FICO technology to optimize alternative deal structuring, one captive auto lender achieved significant benefits, including increased loan approval rates for better dealer and customer satisfaction, faster loan negotiations, combined with greater transparency and reduced risk.

The company will reduce annual losses by up to US$12 million and increase staff productivity, which will reduce annual labor costs by up to $3 million.

Did you know?

Nearly 56% of global auto finance customers will consider more than one source of financing before they make a final decision.
According to our research, 58 percent of U.S. consumers reported waiting more than 30 minutes to secure financing for the purchase of an automobile.

While many consumers grudgingly accept long waits in the dealership as the cost of doing business, 13 percent of U.S. consumers obtained an auto loan online in 2019 (up from five percent in 2018) and listed convenience and speed as two of the top three factors driving that decision. And while you may argue that some of this ‘slowness’ is intentional as the dealer works out the deal to their best end, some of the delay is also caused by the rehash procedure that the dealer has to conduct with their lenders to arrive at an acceptable offer.

The difference between the ‘before experience’ and the ‘after experience’ was the speed with which the finance and insurance guy in the back office was able to get a differentiated, likely to be accepted, and approved counteroffer back into the hands of the salesman. Not just a long list of options to sift through, but a small set of meaningful options that the borrower will want to consider that also work for the lender and dealer.
Every customer’s requirements and situation are different. However, there is a core set of benefits that every customer has benefited from, including:
• Align every offer to your portfolio goals and optimize for outcomes such as profitability or return on equity.
• Automate approval rates and prepare for the shift to digital.
• Improve win-rates with personalized, instant offers that reduce manual, costly and slow "rehashing.”
• Meet all regulatory compliance requirements and improve explainability of your decisions.
• Compete aggressively in sub-prime informed by personalized credit risk and fraud analytics.
• Intermix loan and lease offers to show customers a compelling shortlist of financing options.
You are able to evaluate thousands of candidate offers and deliver an instant shortlist of equivalent offers that are each optimized to a unique and specific loan term, such as monthly payment, interest rate and money down.

Alternative Deal Structure enables you to manage your complex portfolio of loan and lease options and ensure each offer for these offerings aligns to your top-level business objectives.
Connects to DealerTrack and/or RouteOne to deliver your offers efficiently through indirect lending channels.

You can also integrate FICO Alternative Deal Structure with your existing LOS (loan origination system) or pair with FICO Origination Manager to achieve the full benefits.
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Man in car
Decision Management and Optimization
Case Study

Auto Company Drives Profitability Through Real-Time Alternative Deal Structuring
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May 16, 2023 – May 19, 2023

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Get on the road to higher win-rates and maximizing profitability

Using FICO's advanced analytics, we can partner with you to improve automated approval rates and gain the competitive edge.