Buying a car can be an exciting step for customers who are in a financial position to afford the automobile they want. However, millions of people who need vehicles struggle to buy them. They may have credit histories that disqualify them from getting loans through conventional institutions like banks or credit unions. However, indirect auto financing specialists like Consumer Portfolio Services can often help. Dealerships typically provide indirect financing and do all the legwork required to find customer loans. Since dealers work with multiple lenders, they can shop for the best interest rates.
Buyers Are More Likely to Get Loans
Unless car buyers can afford to pay cash, most finance their purchases, often through traditional institutions. Banks and credit unions commonly offer auto loans, but they are usually conservative, making it difficult for some applicants to qualify.
Buyers with no credit history or poor credit are frequently disqualified. Many can’t get loans because they don’t meet income requirements.
Indirect financing companies can often help. They use different qualification criteria than conventional lenders, making it easier for more people to qualify. Interest rates may be somewhat higher than traditional lenders, but they are still reasonable. While indirect financing may not be available for all types of purchases, it suits the needs of most buyers.
It’s a Convenient Process
It’s common for vehicle buyers to shop around for the best financing. They may check with several institutions to get the best rate. Once customers settle on a lender, they either get an interest rate or a loan and then visit dealers armed with financing.
While the process can result in lower rates, it may also mean that shoppers become middlemen between their lenders and dealers. The process can be time-consuming. In contrast, customers who choose indirect financing can go directly to a dealer and begin shopping for their car. Once they have made a choice, the loan process is simple and customer friendly.
Clients fill out an application at the dealership, and professionals handle the remainder of the transaction. Financing specialists reach out to lenders to get the best deal for their clients. They present the offer to buyers, who sign the paperwork and then take possession of their car.
Lenders Provide Customer Service
Once a customer agrees to a loan from an indirect financing company, the lender services the loan. Clients can turn to their lenders for everything from payment information to payoff quotes.
Lenders typically have an informative website with a customer portal that clients can use for every need. Clients can choose from a variety of options to get information or help. Websites allow customers to view their payment history, print statements, and get mailing instructions. Clients can also find answers to common questions conveniently and quickly.
Many car shoppers arrange financing through their bank or credit union, but millions of buyers don’t qualify for these conventional loans. Indirect financing companies help by offering loans to those with limited or poor credit or incomes that otherwise would disqualify them. Customers can get indirect loans through a quick, convenient process at their dealership. Once loans are arranged, lenders service them, offering excellent customer service.