What's a bulk auto loan?

Answered by Car Loans Expert Johnny on April 8, 2021

I've heard this term before, but my research isn't turning up any clear information. What does it involve?

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Johnny

Car Loans Expert

““Buy here, pay here” dealers offer in-house auto financing, which leaves them with a large portfolio of receivables (debts owed to a company by customers) and not a lot of capital. To get a cash infusion to cover inventory or expenses, they will often sell their receivables to a finance company that specializes in bulk auto loan trading.

This finance company will then sell the bulk auto loans to other finance companies, banks, or private investors, which assume control of these contracts. “


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