The American consumer lending landscape has changed significantly over the course of the last few decades. While many traditional borrowing options remain, there have also been quite a few newer innovations that have benefited consumers greatly.
In the past, for example, many would-be car buyers found themselves stymied by credit histories that were less than perfect. A new generation of lenders like Consumer Portfolio Services have partnered up with dealers across the country to help put an end to this formerly common problem.
A Better, More Personal Way of Assessing Risk and Extending Credit to Car Buyers
The banks to which most vehicle buyers used to look for financing tended to be conservative even in the best of times. With many standing to make far more on mortgages and personal loans than on the financing of cars and trucks, standards for buyers of the latter used to be uniformly high.
As a result, too many Americans found themselves wanting for the financing they needed in order to buy a reliable vehicle for transportation to work and the requirements of daily life. While some few dealers sought to help fill the gaps themselves, their limited resources tended to make the ensuing offerings quite a bit less than ideal.
Since then, things have improved greatly. With certain lenders working alongside dealers to buy up loans the latter approve and extend, an fundamentally new way of offering and obtaining financing has become available. Car and truck buyers all across the country now regularly make use of this option where they would formerly have had to settle for far less.
Dealers Find and Enjoy a New Source of Support
While the benefits to consumers of these arrangements can hardly be overstated, dealers have made out well for themselves, too. In addition to being able to sell more cars and trucks thanks to loosened up financing standards, dealers regularly discover that the lenders they work with are interested in helping them succeed in other ways. From marketing support to inventory assessments and other valuable services, dealers regularly end up benefiting every bit as much as the consumers who drive away from their lots in reliable new vehicles.