There are many ways to borrow or lend today, each of which might suit certain situations very well. Companies like Consumer Portfolio Services benefit all involved parties when they indirectly extend financing to car and truck buyers. This especially accessible style of lending is one that has become increasingly common for a number of good reasons.
A Better Way to Provide the Financing That so Many Car Buyers Need
Few car buyers pay with cash, as most purchases cost enough that borrowing will be a far better option. Unfortunately, not all who find themselves in need of reliable transportation qualify for the kinds of loans that have traditionally been used to finance such purchases.
Indirect lenders who focus on serving subprime borrowers end up benefiting several different parties in the process. In particular, this style of lending ends up working out well for businesses and individuals who fall into the following groups:
- Dealerships. Many independent dealerships across the country focus on selling whichever pre-owned cars will provide the most value to their clients. In quite a few such cases, traditional types of financing can be tough to come by even for buyers who are generally well qualified. Indirect lenders who are ready to buy up loans issued by dealers of this general kind make it possible for them to sell many more vehicles. Instead of needing to insist that every buyer come equipped to pay cash, dealers who serve this end of the market can present their customers with other options.
- Investors. Being able to establish positions regarding particular types of consumer borrowing has become a powerful tool for many of today’s top investors. Indirect lenders often package up loans they purchase and turn them into securities that can be bought and sold as desired. In the process, they create new ways for investors to pursue their goals.
- Buyers. Of course, car buyers often benefit most of all when otherwise unobtainable financing becomes available.
A Steadily Growing Record of Success
While this style of financing was less common in the past, it is rapidly becoming one of the most popular of all. Because lenders who work in this way provide so many benefits to such a wide variety of parties, their efforts are always appreciated.