How Dealerships Can Approve Car Buyers with Bankruptcy or Foreclosure

car dealer chats with couple

As you know, there are many different types of people who come into your car dealership looking to buy a reliable car. Some have a good credit history while others have difficulty getting credit approval from auto lenders and finance companies due to bad credit.

People who have a bankruptcy or foreclosure on their credit history are potential car buyers who are likely to have bad credit and therefore have a difficult time getting approved for financing. And as a car dealer, you likely want the ability to approve every consumer who walks into your dealership regardless of his or her credit history.

Keeping this in mind, here’s how you can approve car buyers with a bankruptcy or foreclosure on their credit history. Please note that Trustee or court approval may be required.

  1. Enroll in our subprime auto finance program.
    By enrolling your car dealership in the Credit Acceptance program, you can provide written approval to every customer who walks onto your lot, enabling you to serve more customers, sell more cars and make more money.

  2. Educate car buyers with bad credit on their auto financing options.
    You want to make sure that every customer knows he/she can receive credit approval to buy a car through your dealership, regardless of credit history. Enrolling in the Credit Acceptance program places you in the position to educate credit-challenged car buyers on their auto financing options and offer them a solution.

  3. Enter every application into our proprietary Credit Approval Processing System (CAPS®)
    Generate an approval on every new or used vehicle for every customer, regardless of bad credit or no credit history. With CAPS, you can easily structure deals that are profitable to you and affordable for your customers.

Credit Acceptance works with more than 12,000 franchise, independent and BHPH car dealers across the nation to help them sell more cars and make more money. Last year, we paid enrolled dealers nearly $4 billion in total funding and $180 million in Portfolio Profit.

If your car dealership is looking to increase its market share while maintaining compliance, fill out the Become a Dealer form to learn more about the benefits of joining our auto finance program.