After the recession of 2007, lenders are often more selective about which individuals they choose to finance, including through auto loans. Unfortunately, the reluctance of these traditional lenders to take a risk on borderline applicants can lead to lost sales and customers walking away from your dealership unhappy. No one benefits from a parking lot full of unsold cars and people who aren't approved to buy them, which is why newer lending institutions have formed to fill the gaps. If you own a used or new car dealership and are looking for more versatile financing options, it might be time to look beyond the standard bank financing programs in favor of a more independent system.
Securing a Loan for Customers With Poor Credit
Many American families suffer from bad credit but are unable to secure a loan to begin rebuilding it. Car financing services understand that a rough patch in an individual's financial history is not necessarily indicative of their current situation, and they are more likely to accept applicants with poor credit or a bankruptcy in their past,
Working With the Same People and Loan Terms
One advantage of working with an independent car financing service is that you can offer similar loans to every customer who walks in. This consistency may improve your reputation for fairness and will allow you to assess customer satisfaction more meaningfully, and it can also benefit your efficiency and record-keeping. Working primarily with the same company means you can expect more personalized customer service as you build relationships with the financing service's employees and get to know the terms of a standard loan.
Simplifying Loan Payments and Tracking Systems
Another benefit of lending through a dedicated auto loan service is centralizing your records and loan payment systems. Different lenders all have different paperwork, forms, and loan terms, as well as their own payment rates, dates and delivery methods. By sticking to one system for the majority of your loans, you can drastically reduce the amount of redundancy in your office paperwork and pull your information from a single database. This small change could significantly increase the speed and efficacy of your employees as they process and manage loans.
Financing Older or Unusual Vehicles
Many traditional lending institutions balk at financing old or unique vehicles, which can make selling them very difficult. Much like people with bad credit, unconventional dealership vehicles may find more sympathetic lenders at an independent financing service. If you find yourself repeatedly frustrated by declined loan applications, disappointed customers and languishing vehicles, don't limit yourself to squeamish bank programs. Begin exploring your alternative options today to start connecting cars and drivers at an unprecedented rate, regardless of previous credit mistakes.Share