We’ve long been fascinated by CACC’s lending model relative to competitors. Unlike Westlake and other competitors, CACC claims it structures loans to best align the dealer, end customer, and its own ROE. It typically advances less upfront to dealers in return for sharing a larger portion of the return of the loan over time. This aims to encourage dealers to put customers in affordable cars so they can maximize repayments and share profit over the life of the loan. 

This is what CACC claims, yet it consistently receives lawsuits of predatory lending. 

We aimed to understand exactly how loans are originated on CACC vs Westlake by walking through the process and understanding how dealers structure loans. This research shares each step of the loan origination process on CAPS and compares it to Westlake. 

Loan Origination Process