Not every car buyer qualifies for the low-interest loans that manufacturers and dealers so often use as enticements. In fact, many vehicle shoppers do not qualify for conventional loans at all, with banks and credit unions refusing to approve those who lack positive-enough credit histories.
Fortunately, there are options even for people who have quite a few negative marks on their credit records. Shopping at a “buy here, pay here” dealership has become the preferred option of many who find themselves in such situations.
The style of financing that such dealers offer relies on the support of a lender who ultimately provides the capital. Although dealers’ representatives are entrusted with assessing loan applications and deciding which to approve, a third-party lender will normally take over shortly thereafter.
That can seem a bit confusing to some buyers in certain situations, but things almost always work out to the benefit of all involved. In fact, many car buyers report being highly satisfied with such arrangements, in the end.
Indirect Lenders Make Life Easier for Many Buyers
Only a few American cities boast public transportation systems that are extensive and reliable enough for the average adult to do without a personal vehicle. Some people might be able to make a living and keep up with errands without having access to a car or truck, but that is not the norm at all.
When someone’s credit history deteriorates to the point that conventional lenders will no longer approve applications, life can start to seem very difficult. That can leave a generally responsible person, for instance, wondering how to finance the purchase of a vehicle needed to keep up with basic responsibilities like earning a living.
Companies like Consumer Portfolio Services help fill in such gaps by enabling a type of lending that suits the needs of many car buyers very well. By working closely with dealers who actually sell cars and trucks, they become able to provide a specialized type of financing for which just about anyone can qualify.
The Best Way for Many Car Buyers to Borrow
In addition to being more accessible than the traditional alternatives, this style of borrowing is also quite easy to make use of. At many dealers nationwide, in fact, making arrangements with an indirect lender is very much the norm for car purchases. As a result, shoppers often do not need to worry about the details much, if at all.