How Lenders Like Consumer Portfolio Services Make a Difference to Car Buyers

While it might make sense to buy certain older cars with cash, most vehicle buyers do well to seek out financing for their purchases. Particularly with interest rates remaining relatively low, financing the purchase of a new or previously owned car or truck will generally be financially prudent.

Unfortunately, some buyers find it more difficult than others to line up the financing they need. When car shoppers with credit records that are less than perfect try to obtain loans, banks and other traditional sources of financing will often turn them down. Companies like Consumer Portfolio Services help fill in the gaps and deliver an important service in the process.

The Rise of the “Buy Here, Pay Here” Dealer

Formerly, such buyers would normally have been left to make cash purchases, oftentimes settling for a less reliable vehicle as a result. In recent years, however, dealers who offer financing themselves have become a lot more common.

These dealers typically maintain significantly relaxed lending standards, and this will allow many buyers to complete purchases who might not otherwise be able to. How this is made possible is not always clear, but there is a simple answer to the question.

Specialty Lenders Work Closely with Dealers to Enable Otherwise Difficult Transactions

Few automobile dealers can afford to take significant financial risks on their own, but they do not necessarily always need to. Even when selling vehicles to buyers with imperfect credit histories today, dealers who focus on this type of service can often act with confidence and a feeling of security.

What allows for this is the fact that there are financial companies that will commit to buying qualified loan contracts from dealers as soon as they are issued. By creating a market for debt agreements that other lenders would normally prefer not to enter into, these specialized businesses open up entirely new opportunities.

As a result, even many of those today who have struggled through serious financial problems can often acquire financing when purchasing a car or a truck. Between the dealers who serve them directly and the lenders who do so in the background, such buyers can end up receiving a good deal of truly valuable support.