Changes to FCA tier 1 and 2 lease subvention

Effective Feb 1, 2017, FCA separated the subvention monies allocated to tier 1 and tier 2 leases. In response, tier 2 leases are now being priced at a higher money factor than tier 1 leases.

To accommodate this change, our pricing team made the necessary adjustments to our internal score card, increasing the number of tier 1 approvals for super-prime customers. Since the change, we have seen our tier 1 lease mix increase 152 percent.