Subprime financing today has become a tool of choice for many car buyers that have had credit affected one way or another whether it was from a previous repossession or even a bankruptcy, sub-prime is a choice that like repo is not really out on billboards or everywhere you look. Sub-prime financing is part of a dealerships financing structure, it is one of those things that automatically comes into play after your credit is ran. In fact these days most companies have different tier sub-prime loans available. For example perhaps you have a 580 credit score, you will likely be in the C tier sub-prime area, where if you had a 620 you could be in the B or even A rated credit area.
Getting car credit offers in the mail
When you get a credit offering in the mail, it usually signifies that you have had a lower than normal credit rating. A subprime finance company that we dealt with during our first year in the business worked by finding post bankruptcy people and making them a credit offer based on the severity of the bankruptcy or past repossessions. They did great, they had built over 150 employees with only around 4 in the repossession department which i’ll explain later. They developed relationships with only a select few franchise car dealerships and never worked with used car dealers. These sub-prime lenders and in house tier lenders are pretty much the only choice for a recent bankruptcy customer or previous repossession. You will almost always never have these options available at the friendly neighborhood bank or any banking institution for that matter. [Read more…] about Subprime Financing your Next Car