Many vehicle dealers today understand that being able to offer financing to customers can be the difference between a sale and a car or truck that keeps taking up space on a lot. In many cases, the best option will be to arrange a partnership with a company that is ready to buy up loans on reasonable terms soon after they are issued.
Lenders like Consumer Portfolio Services have built up strong records of assisting dealers in this way and producing plenty of benefits for vehicle buyers in the process. Understanding what to look for in such a partner is an important step for every dealer who considers this option to take.
Simple Ways of Standing Out
There are now many lenders nationwide who work under such arrangements with car and truck dealers. While just about all of them will happily make promises in order to earn new business, fewer are capable of living up to these commitments. Dealers do well to seek out lenders who exhibit plenty in the way of:
- Stability. Because dealers expose themselves to risk with almost every move they make, eliminating one possible source of it can help. Companies that have long records of successful lending will inevitably merit more consideration than those that do not yet have much history to assess.
- Transparency. Some lenders of this general type are not always aboveboard and upfront even with the dealers who deliver the most business to them. Larger, publicly traded lenders are, in general, much more likely to be transparent and forthright than smaller ones that remain privately owned.
- Scale. Being a lender of a certain size also enables other possibly valuable benefits for dealers. It can allow a lender to purchase loans at significantly more attractive prices, for example, or to provide ancillary types of support that dealers can benefit from, as well.
- Experience. Above all else, lenders who understand the business of selling vehicles tend to be the most productive to work with. A deep understanding of the industry will tend to ensure that lenders will be able to align their requirements well with those of dealers.
The Right Lending Partner is Out There
For dealers who do make the effort to seek out such a suitable lender to work with, impressive results and a long-term relationship are often awaiting. Looking beyond the boasts that many lenders will make and delving a little bit deeper can easily pay off.