Ashley ChorpenningWe think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.
Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.
Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.
| Pros | Cons |
|---|---|
|
Auto financing for eligible applicants who have credit problems, low income or limited credit history |
Works directly with dealerships, not with individual consumers — which means you’re somewhat removed from the lending process |
|
Loans for new and used cars |
High interest rates |
What to know: Consumer Portfolio Services auto loans
Consumer Portfolio Services is an indirect auto loan lender. Rather than working directly with prospective car buyers, Consumer Portfolio Services partners with dealerships to extend loans to eligible applicants with bad credit. This may seem great, but keep in mind that you can end up paying a steep price when borrowing from a subprime auto lender that targets people with credit issues.
While Consumer Portfolio Services works only through auto dealers, it does have a lending arm called New Roads that works directly with consumers.
Financing for shaky credit
It’s important to be aware that lenders targeting people with not-so-great credit profiles usually charge higher interest rates and fees. This is because lenders typically consider someone with dinged-up credit to be a greater risk.
In addition, when a car dealership finds a loan for you through a finance company like Consumer Portfolio Services, it’s the dealer and the finance company — not you — that’s arranging the loan. That means there’s room for the dealer to potentially add its own markup to the mix, driving your costs up higher.
A closer look at Consumer Portfolio Services auto loans
One more thing to keep in mind is that when a dealership submits your info to Consumer Portfolio Services to apply for a loan, the company will pull your credit reports to determine eligibility. This is known as a hard credit inquiry, which can negatively impact your credit scores.
Is a Consumer Portfolio Services auto loan right for you?
If you have bad credit and the dealership you’re shopping with has a relationship with Consumer Portfolio Services, you may be able to get an auto loan from the company.
But interest rates can be high and your loan may cost you even more if the dealership adds its own markup. Even if you have bad credit, a loan like this may not be your only choice, though. You might want to consider trying to get prequalified with a number of other lenders so you can compare other options. While prequalification isn’t a guarantee for loan approval — you still have to formally apply — it can give you a pretty good idea of other choices you may have.
How to apply for an auto loan from Consumer Portfolio Services
Consumer Portfolio Services works directly with dealerships — that means you can’t apply directly with the company. Keep in mind that if you go to Consumer Portfolio Services’ website and find your way to its Car Payment Calculator link near the bottom of the home page, a click will redirect you to a calculator on the New Roads website. You can use that car payment calculator to estimate terms for a New Roads loan — not for any CPS loan you might get through a dealer.
To learn more about New Roads, read our New Roads auto loans review.
Not sure if Consumer Portfolio Services is right for you? Consider these alternatives.
If you have less-than-ideal credit, make sure you understand the hidden risks of subprime lending before you apply for a car loan — either directly or through a dealership that works with a company like Consumer Portfolio Services. Here are some other options to consider.