Clients are typically referred to Legacy Auto Credit because they are in or about to enter a bankruptcy or a consumer proposal. Most traditional lenders will reject them for a car loan at this time. Other predatory lenders may take advantage of the client’s desperation and charge them exorbitant interest rates on old, high mileage, unreliable vehicles that will require expensive maintenance at a time the debtor is trying financially to rehabilitate themself.
We at Legacy Auto Credit primarily base our acceptance of car loans on affordability. We ask ourselves: Is their income sufficient to support a car payment on top of their other regular expenses? Other factors such as length of time at the same job and the same address influence our determination of risk. It is very important for our business model that the client is successful. We do not sell a vehicle and then turn our back. When we lease a vehicle to a person rehabilitating their financial life, we become partners with them.
If we do not accept an applicant, it is primarily due to our belief that a car payment is not affordable for that person at this particular time. We do not want to cause further financial difficulty for them.
With Legacy Auto Credit acceptance is not a blanket approval.
Our approvals are for a payment limit. For example, someone may be approved for a payment “up to” $380 a month while another may be approved for “up to” $600 a month. That does not mean the person has to take a vehicle requiring a $600 payment. We always prefer they accept a vehicle with a lower more manageable payment.
Being approved for $600 a month and then settling on a vehicle that fits their present needs at $420 a month is a win-win for everyone that we encourage.
The vehicles we provide are typically low kms, newer, reliable vehicles that fit the budget of someone in a bankruptcy or consumer proposal. Instead of trying to maximize the sale, we often work on setting proper expectations for a vehicle based on the debtor’s budget and actual needs.