Can Consumer Portfolio Services Help You Buy A Car?
Consumer Portfolio Services are meant to be a complement to the credit expertise of the consumer. They offer a more holistic approach to car buying and financing and can help customers obtain car loans without being weighed down by numbers. In fact, they are an efficient way of handling the multiple roles that car dealers play in the car buying process. These services come from an assortment of companies such as banks, credit unions, and brokers. However, many consumers have expressed frustration with the results of these services.
A problem that most consumers have with Consumer Portfolio Services is the absence of direct communication between the lender and the borrower. Most consumers find it difficult to explain their needs to car dealerships which in turn translates into a decreased chance of getting approved for an auto loan. While many dealerships try to keep the lines of communication open through direct communication and referral programs, this rarely solves the problem of getting information between the lender and the customer. The end result is a situation where dealerships simply ignore the requests of their customers and push through to get a loan regardless of the need or situation presented.
Because the information provided by a specialty finance company comes directly from banks and other financial institutions, there is a great temptation to use this information to obtain an edge over competitors. After all, even though a bank’s lending policies are stricter, they do not report to government agencies such as the Federal Trade Commission. By bypassing government entities, a broker can get access to hundreds of dollars of past credit checks and other important data. A reputable specialty finance company will be very careful to screen their clients before granting a loan so that they know exactly who they are doing business with and what information to expect.