What's a bulk auto loan?
I've heard this term before, but my research isn't turning up any clear information. What does it involve?
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Answered on Apr 08, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
““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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