Captive Car Financing: A Blessing For Bad Credit Car BuyersCaptive Car Financing: A Blessing For Bad Credit Car Buyers

Buying a car means you should explore all your options while you are at it. While some people maintain a good credit score, it is not possible for everyone. For many of us, our credit score lies between average to a poor credit score. If you have suffered from bad credit, exploring your car buying options becomes all the more necessary. Captive financing companies have gained a lot of popularity in recent years as they have opened a new doorway for bad credit auto buyers. Typically, a captive financing company is a subsidiary part of a larger parent company. The larger corporation is usually into the production of cars and the captive financing company offers auto loans to the car buyers who want to purchase the car of the parent company.

Bad Credit Car Buyers! Enjoy Benefits of Captive Car Financing

You can purchase the car that you want with the help of captive car financing. Understand the following benefits of the financing option and get one step closer to purchasing your dream car.

1. Less Stringent Guidelines

As the captive financing companies are part of the parent company, the auto financing risk is lower for captive lenders. The advantage for bad credit auto buyers is that as the financing company is loaning money for its own product, the lenders tend to have more flexible guidelines than a bank or a credit union. However, your current income should be enough to repay the monthly payments. A consistent and stable income generation will improve your chances to get hold of a decent bad credit auto loan.

2. Favorable Auto Loan Terms

The major difficulty that bad credit auto buyers face is that very few lenders wish to lend their money to them. If you have bad credit, you will get auto loans with interest rates that are higher than usual. Also, you may have to accommodate with the terms of the lender. In the case of captive financing, auto buyers are helping in increasing the sales of the parent’s company and helping them reaching their sales number. Therefore, captive auto lenders offer better interest rates than the market. Many lenders also pass on cash rebates to the end consumer while providing favorable auto terms.

3. Easy Application Process

In a general scenario, once you decide the make and model of the car you want, you have to start looking for an auto lender to help you with the financing process. Captive financing companies will save you the trouble of shopping around various dealerships as you will obtain the auto loan and your car under the same roof. Any guidance that you require will be easy to obtain as the company is part of the parent car company. Therefore, captive car finance companies will smoothen your process by getting all the required departments together. It is truly a blessing!

Capitalize on Captive Car Financing

A history of bad credit score or poor credit history is not the end of the road. Captive car financing companies can be your way to obtaining an auto loan. Buy the car of your choice with affordable loan terms. And, do not forget to keep working on improving your credit score.

by Adam Porter
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