Borrowers, Lenders and Auto Loans

Unfortunately, many individuals tend to perceive their relationships with their creditors as adversarial, even when their loans are on good terms and the creditor values them as a customer. The creditor/borrower relationship, when kept on good terms, has benefits for both parties, especially where large loans such as auto loans are concerned.

For a moment, consider how a lender does business. First, they have to attract clients. The best clients require the most work to obtain. This means the lender has to offer good terms, honesty in their practices and, of course, must pay for advertising to reach new customers. Oftentimes, an auto loan is one of the largest forms of debt a consumer carries. For the lender, attracting the best borrowers can mean the difference between staying in business and going under.

To that end, an auto loan lender is usually willing to work with clients to make the loan work for them. Consumers oftentimes mistake the process of negotiation as one in which lenders try to scam them. This is not at all the case. Consider a lender's first offering just that; an offering. If the terms are not acceptable, try another lender. If the other lender does better, go back to the first and see how far they're willing to go to get new business. Of course, this requires that the borrower have excellent credit. A customer with good credit and a good income is a lender's dream and that consumer can demand a lot from these lenders.

The lenders will usually go out of their way to get business. If one doesn't like the interest being offered, ask the lender if they'll go lower. If not, ask if they'll write in a good customer clause so that the borrower's regularly keeping their payments current can be a reason for a reduction in interest. This is good for the buyer and the lender as the lender isn't offering anything until the borrower has proved themselves. This give and take is the foundation of any financial relationship.

Ideally, the borrower is happy with their lender and the lender can rely on their borrower. If this is the case, expect the lender to be very interested in offering new products to the borrower and, in some cases, for them to offer extras to keep the customer's loyalty. For the lender, there is simply nothing better than a customer with whom they have a good relationship. They need not pay to advertise their services to this customer and, most of all, they hope their reputation will be attested to by the customer. Borrower and lender relationships, when they're founded on good business practices, are not at all adversarial.