Kelly’s Korner-Finding used car lenders.
Q: I am a used car dealer who until recently specialized in wholesale. I would now like to expand my customer base into the retail sector. Where can I find lenders to fund on used car sales?
A: Being new to retail may present some challenges when it comes to securing lending relationships. Most lenders will ask you for a copy of the businesses financial statement. Look for subprime lenders, finance companies, and even local credit unions as lending sources. Many credit unions are now accepting dealer-generated finance contracts. Many local lenders will buy contracts from a used car dealer. Some of these local resources will operate under a national nameplate.
Depending upon your current financial position, you might want to develop a buy here – pay here strategy in order to roll more vehicles and help your customers re-establish their credit. After 6-12 months of payment history, you may be able to discount your portfolio of loans so that the dealership could benefit from an additional influx of cash on a regular basis.
The dealerships who are selling vehicles are those who are finding legal, ethical ways of securing financing for their clients. The time has come to think outside the traditional box in order to meet the untraditional market conditions.
Contact our office to request our current lender list. We will be happy to fax a copy to you.