A new climate for Small Town Banking

In the middle of all of those things, people still need to go to work, and some even work more than one job. To accomplish this and keep a roof over their family's heads and food on the table, it does take transportation. Many people have discovered that due to unforeseen circumstances such as a lay off or downsizing of a company, their income has taken a severe hit. Some of the consequences of those hits may be foreclosures, bankruptcies, or repossessions. Any of those incidents create a less than favorable credit report. Banks are tightening their lending practices and where once one could easily get a five year loan on a new vehicle with minimal money, if not zero, down, now find they are unable to secure a loan for reliable transportation. The "Buy Here, Pay Here" industry has changed over the last ten years and with it, the caliper of automobiles and financing options has risen to higher levels of integrity. There are distinct advantages of buying an automobile at a "Buy Here, Pay Here" establishment and with it, comes the sense of small town banking that is absent in the financial market today. When someone has taken a credit hit, there is a level of anxiety involved in anything that requires a credit check or a credit history to be run. With the banks being as remote and removed from the actual purchase as they are, there can be an overwhelming sense of defeat. On the other hand, when someone is face to face with the person making the credit decision regarding them, there is the opportunity to state their case and explain the circumstances surrounding their credit situation. This makes buying a car a much more positive experience. Purchasing a vehicle at a Buy Here, Pay Here dealership gives everyone the sense of involvement in the decision. The credit history can be explained to a real person and not to an automated system. The credit worthiness can be validated with pay checks, tax returns, proof of home ownership or a lease, and bank statements or investment statements. Bringing this information to the person who will be making the loan decision, gives the buyer a much better chance at securing a loan than someone simply looking at a credit score and determining their credit worthiness. It brings back personal banking relationships that have been lost in the bank mergers that have occurred over the last ten years or better. The person buying the vehicle can come away from the experience with a sense of accomplishment and well-being. The vehicle will be the right price for their budget and they will be able to afford the payments. In many cases, the buyer develops a bond with the dealership and a long term relationship can be maintained. They are also more likely to tell friends and relatives about their experiences. The buyer is now an important part of the dealership and they have been instrumental in securing their own financing in a world that is not inclined to deem them credit worthy.