Abstract: A system and method for providing incentive-based auto financing is disclosed. The method includes the steps of providing a member database comprising a financial data relating to a plurality of members having at least a first loan, comparing the member financial data against a predetermined set of eligibility criteria to prescreen at least a portion of the plurality of members for inclusion in a second loan, and periodically evaluating the member financial data relating to the first loan. Points are assigned to the member financial data according to the evaluation that correlate to an interest rate reduction for the second loan based on the assigned points cumulating above a threshold level. The cumulated points, interest rate reduction, and a pre-approved limit may be encoded on a machine-readable card for use at a dealership.