Buy here pay here dealers are great when it comes to financing. There are two common features of all of these dealers. The first is that they do not need the customers’ credit scores to determine eligibility. The second is that they directly finance their customers without needing third-party lenders to finance the loans.
However each location may ask for different criteria for loan approval as each location is separately owned and operated. This creates a problem because if a customer does not fit the criteria at one dealership, they might assume that all other locations are the same. This is where having a shared network comes in handy. By using the buy here pay here dealership networks, the customers get a better chance of having to only go to one dealership to finish the deal. Without such organized networks, dealers would waste time and money to generate their own leads and customers would waste time applying to so many dealers.
Without a network, a customer would apply online and see what the dealership has to offer. However, with a network of dealers all connected to the same application online, the process works for the customers’ favor. The applicant would apply by filling out one form only and then all the dealers that are connected in the system would have a chance to take the application. The dealers are logged into the system and they are the ones calling the customers making it easier for customers to find the right loan approval even before they reach any car dealership. However, to ensure that the customers are not having ten dealers calling them back, the online form is automatically filtered so that only the dealers that can accept the applicants and can guarantee pre-approved loans to the customers, would get the customers’ information and call them back.
This is needed since some locations ask for high incomes to approve people while other dealers approve low incomes. Some dealers deny to finance customers that have had vehicles repossessed before while other dealers do not mind as long as it happened a while back with each dealer requiring different number of months of clean history. In addition, some customers might be surprised to learn that while some in-house financing dealers grant expensive vehicles to customers only if their income is high, other locations might allow customers with lower incomes to finance such vehicles by having longer loan periods or weekly payments instead of monthly ones. So by applying to a network, the customers would indicate his overall financial situation and allow the system to compare those inputs to the criteria of all of the dealerships in the customers’ area to produce the best match.