Auto financing refers to the process of obtaining the funds necessary to purchase a new or used vehicle. It’s often accomplished through the use of loans, leases and other financial instruments. One company that provides consumer car loan services is Consumer Portfolio Services (CPS). Here’s a closer look at how they can help you finance a vehicle.
What Does CPS Do?
Consumer Portfolio Services is a lender that finances vehicles for consumers with less-than-perfect credit ratings. They provide financing solutions to those who have difficulty getting approved for a bank loan due to their credit status. Because of this, CPS allows people in need of a vehicle to find one that’s suitable for them without having to worry about being turned down by a bank.
How Does CPS Operate?
CPS operates by supplying financing to dealers who, in turn, offer it to individuals looking for a loan. This means the dealer takes responsibility for assessing the risk associated with providing financing for individuals with poor credit who are in need of a vehicle. The loan is granted based on the car’s value, not just your credit rating. This also serves to protect buyers from taking out loans on cars that aren’t worth the amount of money they’re borrowing.
Once the loan is granted, CPS sets up an account in the name of the borrower, which they pay monthly. Payments are typically made over a period of time ranging from 12 months to 72 months, depending upon the loan agreement. If a payment is missed, CPS contacts the borrower to arrange a payment plan before any action is taken.
What Are the Benefits of Working with CPS?
Using CPS has several advantages. First of all, working with CPS allows those with poor credit to obtain financing for a vehicle. Secondly, payments can be as low as $50 a month. Thirdly, dealerships offering these financing options might also be willing to provide incentives such as extended warranties and other discounts. Last but not least, CPS allows for borrowers to improve their credit history by making regular payments on the loan.
Consumer Portfolio Services has been providing financing solutions to people with poor credit since 1991. They’ve helped thousands of individuals find the cars they needed. Working with CPS can be beneficial if you’re in the market for a vehicle and don’t have the best credit score.
Are There Any Drawbacks?
One potential downside of working with CPS is that the interest rates are typically higher than those offered by banks. This means that the cost of interest over the life of the loan can be significantly more expensive than what would be available with a traditional loan. Additionally, some dealers may tack on additional fees when offering CPS options, so it’s important to read the fine print before agreeing to any terms.
Learn More About Consumer Portfolio Services
Consumer Portfolio Services is one option for individuals looking to finance a car but have limited access to traditional bank loans. Understanding how the financing process works and what the potential benefits and drawbacks are, will help you make the best decision for your situation. For more information regarding Consumer Portfolio Services and auto financing options, contact your local dealership or go online to explore more details.
