I have never been much of a spender, but when I started investing in real estate, I knew that I had found my calling. I was capable of turning a simple loan into a large return, and it was really fantastic to see my efforts pay off. Unfortunately, sometimes money was tight, and I found myself taking out loans to invest in new deals. However, I was able to learn a few tricks of the trade to save money on loan interest, such as limiting the payback timeline and perfecting my credit. This blog is all about saving you money on interest.
Sometimes a car buyer may be interested in financing a car with less than optimal credit. At this point, it becomes up to the sales department and the financing department to figure out whether they can potentially make the purchase work. Here are some things a sales representative might consider when trying to finance a car buyer who is coming back without approval. Read on to learn more about credit reports for auto dealers.
1. Ask Them to Add a Co-Signer
Adding a co-signer is the fastest way to qualify a difficult to finance car buyer. Those who are hesitant may need to know more about the co-signing process. Let them know that though the loan is co-signed they can choose whether or not the car is owned by both parties or a single party. This may make the decision to co-sign easier.
2. Direct Them to their Credit Report
Tell a customer where to find their credit report and what to look for on it. It's more than possible that a buyer could actually have mistakes on their credit report that are potentially holding them back. By fixing these issues, they may be able to qualify.
3. Refer Them to a Bad Credit Lender
A dealership may not qualify a borrower, but the dealership may still want to make the sale. In this situation, a dealership may actually want to point the car buyer to a bad credit lender. There are many online bad credit lenders that give out auto loans to those that a dealership will not touch. Though these loans are more expensive and have far higher interest rates, the borrower may be able to refinance the loan when their credit improves.
4. Suggest They Pay Off Some Debt
In a worst case scenario, you can always advice a car buyer to pay off any outstanding debts and judgments and to return to the lot in three to six months. Credit often shows a marked improvement after debt has been paid off, and this will give the car buyer an actionable goal to move towards. If the car buyer has enough money for a car down payment, they may be able to improve their credit first.
A car buyer's financial situation can change. Giving them options and telling them what they can do may make the difference between a sale in a few months or even a few weeks. Some difficult to finance buyers may be just on the cusp of meeting the requirements.
Share24 May 2016
