Millions of generally responsible Americans have found themselves in the same tricky situation. Just about every working-age adult needs to have access to a reliable vehicle in order to keep making a living.
Falling behind on even a couple of bills, though, can leave a person with a credit record such that obtaining financing for a car purchase becomes more challenging. Fortunately, lenders like Consumer Portfolio Services are working behind the scenes to make sure that almost anyone who needs a loan can get one.
A More Accessible Style of Automotive Lending
In the past, it used to be necessary for most car buyers to arrange for financing to be provided by banks or other conventional lenders. Unfortunately, part of the fallout from the last recession has been a tightening of lending standards at such institutions almost across the board.
As a result, many people who might have easily qualified for automotive loans as recently as twelve years ago now find themselves needing to seek other options. Even when banks will not extend loan offers to a person, there are now some alternatives.
For many car buyers, that means heading to a local dealer who arranges for financing on site. In most cases, these businesses work in partnership with lenders who agree to buy the qualifying loans that they issue on the spot.
This arrangement makes for a generally more flexible style of financing that is available to far more buyers than the conventional type. That can easily mean being able to afford a car needed for transportation to work when other options do not exist.
Indirect Lenders are Easy to Work With
Some people assume that this style of financing must come with some drastic downsides. One issue of frequent concern is the fact that indirect lenders tend to securitize and sell off the loans that they acquire from dealers.
In most cases, though, the same lender will continue to service and manage the loan until it ultimately gets repaid. As a result, the same lender that enabled the purchase of a vehicle in the first place will have an incentive to keep everything working smoothly thereafter. Borrowers therefore rarely find themselves with any reason at all to complain.