Financing new and used vehicles from dealerships requires a better than average credit score.  In some cases, consumers can’t qualify for these financing programs based on their credit histories.  Some of the larger dealerships will self-finance these customers with less than desirable credit, but the smaller dealerships don’t have the capital to make these loans.  Hampden Group Holdings, through their subsidiary PrePaid Motors, Inc., provides third-party vehicle financing programs for the customers of these smaller auto dealerships. 

The sub-prime vehicle financing market provides over $20 billion in loans annually.  Over 20% of the consumers applying for traditional vehicle financing are turned down based on their credit score.  PrePaid Motors, Inc., provides smaller auto dealerships with a viable option for financing their customers with questionable credit histories by eliminating the credit check all together.  This allows the smaller dealerships to compete with their larger counterparts by opening up their inventory to customers that would not normally qualify.

How it Works

After Hampden Group Holdings has signed a dealership to our third-party vehicle financing program, a customer that can’t qualify for traditional credit, can now be financed through Prepaid Motors, Inc. The consumer fills out an application for a vehicle loan at the dealership, the dealer faxes it to our offices and our representatives search several national databases to establish the applicant’s viability for repaying loans and transacting business in an ethical manner.

Once the applicant has been approved, they sign the loan contract and ACH authorization agreement that allows PrePaid Motors to automatically withdraw the car payment from the customer’s checking account.  In addition, PrePaid Motors also installs a Global Positioning System (GPS) and vehicle disabling technology to track the vehicle and aid in the recovery of this asset in case the loan is defaulted.

Reasons for using our Vehicle Financing Programs

There are several key factors why smaller dealerships consider using PrePaid Motors as their provider for sub-prime lending programs.

1. Sub-prime lender for multiple asset types – auto loans and leases, recreational vehicles, marine loans, motorcycles, power sport, manufactured housing and other consumer receivables.
2. Financial Strength – PrePaid Motors self-funds these programs and also has partnerships with finance and insurance companies to provide collateral backed, short-term, high-yield, financing options.
3. Integration – PrePaid Motors’ applications are web-based and easily integrated with the legacy applications of the dealerships.
4. Training  – Prepaid Motors provides extensive training to the dealership’s employees and competitive incentive programs.
5. Technology – PrePaid Motors uses the latest technologies (GPS / Disabling) to protect our assets and reduce our recovery expenses.