More approvals that make sense for the customer and the store
For Herren, the biggest win isn’t just approval volume – it’s the ability to get an approval that is workable and profitable. “Not only will we say yes, but we’re getting a call that makes sense to us and to our customers.”
“In the past, a certain deal may have had a 30 percent interest with a $2,000 bank fee. That same deal now would have a 10-15 percent interest rate with a $200 bank fee. It’s insane.”
Beyond incremental approvals, Herren emphasized that Upstart has meaningfully shifted financing volume away from other lenders, becoming the default destination for 95 percent of the deals they previously would have sent elsewhere.
Speed that changes how deals are worked
Upstart’s speed to decision reduces time lost to back-and-forth with traditional lenders and helps the store stop guessing. “We know a decision in one to three minutes whereas every other bank can be 20-30 minutes or up to two hours sometimes. Getting an answer from Upstart in two minutes is huge; we know what we’re working with out of the gate.”
He also shared that instead of “educated guessing” and going back and forth with the customer, the team will send the deal to Upstart early so they can quickly determine how to structure the deal and “which way we’re going to pivot.”
“We know a decision in one to three minutes whereas every other bank can be 20-30 minutes or up to two hours sometimes. Getting an answer from Upstart in two minutes is huge.”
- James Herren, GSM
Profitability: strong backend performance
Herren also shared that Upstart has made a huge impact in boosting their back-end performance, which is around $3,700. “Upstart’s back-ends are significant,” said Herren.
Deals saved every month
Herren estimates Upstart helps them close an additional 12–15 deals per month that they likely would have lost otherwise, often by turning tough terms into workable options for the customer and the dealership. When asked if Upstart helps the dealership save deals, Herren stated, “Every day. It happens every day.” Herren went on to describe that in his local market of around 80 dealers, Tracy Honda is the only dealer up year over year. “We’re up 20 percent while everyone else in our local area is down 30 percent. I’m going to attribute a lot of that to our relationship with Upstart.”
