People will often times need a car, and their need for a car isn’t based on their ability to afford a car or their financial ability to purchase one. However, for those whose finances aren’t necessarily in the best shape and for those with past credit problems, getting a car means getting an auto loan, and this could prove to be quite challenging. Fortunately, a resource like Consumer Portfolio Services may be able to help people who find themselves in this position.
What is an Indirect Auto Loan
What Customer Portfolio offers are indirect auto loans to people with bad credit, limited income or limited credit. How an indirect auto loan works is the dealership gathers information from an interested borrower and then shops around to various lenders to see who is willing to finance the loan. An individual will have their car purchased through a lender, but they will never actually speak with a bank representative. They will repay the loan to the bank and if the loan goes into the default, the bank and not the dealership will be responsible for pursuing the borrower.
Sub Prime Auto Lending
While this is standard practice at a dealership, where Consumer Portfolio comes in is that they can help people that would normally be turned down for a typical auto loan. This could be because of poor credit, or it could be because a person doesn’t have enough credit. For young people just starting out, they simply may not have had enough time to establish credit, and that can hinder getting a loan. In these cases, a person may require a lender willing to take a chance by extending credit to someone who might be a risky borrower.
For people with poor credit, low income or with limited or no credit to speak of, the cost of these sorts of loans will be more expensive than lending to people with established credit, good credit scores and established credit. However, the real challenge is getting credit and that is what Consumer Portfolio does. So, if you’re in a situation where you’re having a hard time getting lenders to extend you credit for the purpose of buying a new or used car, you may want to consider an indirect lender that focuses on borrowers with limited income, limited credit or poor credit.