FIRST INVESTORS: Overview of First Investors Financial Services

First Investors

Before we get into the specifics, here’s some background on 1st Investors Financial Services: Since 1988, 1st Investors Financial Services has been in operation. Over the years, they have helped 500,000 customers finance their cars, no matter what their credit history was like. 1st Investors is dedicated to getting people into the vehicles they require. The company can do this by giving customers a wide range of payment options at the lowest possible monthly rate. Let’s look at First Investors’ financial services and financing further down in this post.

First Investors Financial Services

First Investors is a company that helps people buy cars. It was started in 1988 to meet the special financing needs of car dealers and consumers. Also, First Investors has created a unique business model that includes indirect and direct lending, portfolio acquisitions, and third-party servicing. This multi-channel approach diversifies assets and revenue while also providing a thorough understanding of both the dealers’ and customers’ auto financing needs.

First Investors is an indirect lending company that primarily serves automobile dealerships in 43 states, offering a variety of financing programs that generally target consumers with credit scores of 510 or higher, with a strong emphasis on consumers who have gone through the bankruptcy process. Furthermore, the company prioritizes high levels of service to its dealer clients as well as consistency in its funding process. First Investors’ direct lending business, which began in 1996, targets qualified consumers with pre-approved credit offers via direct mail.

This business segment allows selected consumers to refinance their existing auto loan and realize significant rate savings compared to their current loan. Potential customers are identified by the company using empirical custom scorecards and response models. The company’s portfolio acquisition segment, which has been active since 1992, targets performing, non-performing, and/or automobile charge-off portfolios.

The Company primarily seeks non-prime credit portfolios, though it has acquired near-prime portfolios in the past. First Investors has acquired eight portfolios, either alone or in collaboration with financial buyers.

The company’s third-party servicing business started in 1992. It helps banks, credit unions, finance companies, portfolio buyers, and portfolio lenders with loan servicing and collections for performing, non-performing, and charged-off portfolios in credit niches from prime to deep subprime. First Investors has closed 8 third-party servicing agreements, which shows that it has a track record of doing well.

Reviews of First Investors Financial Services

If you have a loan with First Investors Financial Services, you most likely got it at the dealership when you bought your car. You most likely used your used car as a trade-in to reduce your down payment. The dealer found you a loan, and you can make payments by going to https://www.fifsg.com and clicking on “My Account.”

79% of all auto loans in the United States are obtained from a dealership. People shop for new cars but not for new loans. As a result, auto dealers have an advantage when it comes to lending to car buyers. The same is true for auto insurance and warranty inquiries.

The challenge is as follows:

  • A car dealer’s primary goal is to sell a car.
  • The second most important goal of a car dealer is to sell the car at the highest possible profit margin.

Since the car dealer’s interests are at stake and most Americans get loans to buy cars, it shouldn’t be a surprise that Americans pay too much for their interest rates, right?

First Investors Financial Services, as previously stated, is an auto loan and financial services company that specializes in the segment of Americans with moderate (i.e. near-prime) credit. We examined First Investors Financial Services reviews and discovered the following:

  • BBB: 1.9 stars out of 5 with 31 complaints
  • Wallethub: 4.2 stars out of 5 from 6 reviews
  • Glassdoor: 2.8 stars out of 5 based on 57 reviews

How to Make your First Investors Financial Services?

If you already have a loan with 1st Investors Financial Services, you can pay it online. Simply go to https://www.fifsg.com and log in to My Account on the right. You have a choice between:

  • Making a single payment.
  • Set up Autopay from your checking account.

Please keep in mind that many banks and other financial institutions provide a rate discount if you enroll in autopay, which can lower your monthly payment and save you money on interest. When you were pre-qualified for auto financing through First Investors Financial Services, they would have highlighted this option to you to get you into a lower interest rate.

First Investors Financing

We recommend determining how much you owe before refinancing your First Investors auto loan. To get a clear picture of your current loan, we need to obtain your loan payoff amount and details from your 1st Investors Financial Services loan payoff statement. The loan payoff statement does not reflect your current balance. The loan payoff statement, on the other hand, summarizes the following data points:

  • the amount of your loan (usually your loan amount balance plus a few small fees)
  • the deadline until your payoff is valid, to avoid late fees (usually 10 days from when you requested it)
  • the daily allowance (how much of daily interest your loan accumulates)
  • your customer number (the new lender needs that to pay off your loan)
  • the payoff location (the new lender needs to know where to mail the check to)

If you know how much your loan will cost to pay off, you can decide if you want to refinance it or not. High monthly savings do not always imply that refinancing is worthwhile.

Things to Think About Before Getting Your First Investors Financing

Is refinancing your First Investors Financial Services loan a good idea? Yes, you will save thousands of dollars over the life of your loan and receive up to $150 in monthly savings. You’ll be done in minutes if you have a good partner who knows how to navigate the process.

Still, while helping Americans refinance their auto loans, we’ve run into several “traps.” There is no such thing as a prepayment penalty, just to be clear. So, the official payoff statement has everything you need to know to think about a refinance.

Once you’ve determined the payoff amount, you must decide whether you want to pay off your loan yourself or have the new lender handle it. You have a few ways to pay, but you need to get the payoff statement from customer service at First Investors first.

Refinancing Your First Investors Financial Services Auto Loan

Find a lender who can extend the term of your used car loan or who offers lower auto loan rates before the loan is paid off in full. This will lower your monthly payments on your First Investors Financial Services (also known as First Investors) auto loan. The best way to do so is to use an online application that immediately returns your annual percentage rate (APR). For one of two reasons, lenders typically offer you a lower interest rate than your current auto loan:

  • When you purchased your car, the participating dealer increased your rate. This is common practice for auto loan originations and making more money.
  • You have improved your credit and are now eligible for a lower car payment and interest rate.

Both of these observations are common sense, and they are the reasons why you can save a lot of money, especially if you only drive your car for personal reasons. You improved your credit with the credit bureaus from near-prime credit (i.e., between 600 and 680 on your credit report) to prime credit (i.e., above 680). You don’t have any financial problems, and thus your new lender will most likely be like other financial firms.

Pros and Cons of First Investors Financing

Pros

  • It is legal in all 50 states.
  • There is no prepayment fee.
  • First Investors Auto Refinance does not send credit reports.
  • Takes into account applicants with fair credit.
  • Thinks about older vehicles (max. 8 years)

Cons

  • There is an origination fee charged.
  • Do not provide soft credit pull pre-approval.
  • Assesses a late fee.

What Are the Requirements for First Investors Auto Refinance?

People with credit scores from 510 to 850 may be able to use First Investors Auto Refinance. The eligibility age is 18 or the state minimum, whichever is higher.

To get an auto loan through First Investors Auto Refinance, applicants must make at least $18,000 a year or more. First Investors Auto Refinance will consider borrowers regardless of whether or not they have a job if they can show that they can pay back their loans.

The Military Lending Act (32 C.F.R. 232) says that lenders can’t charge covered servicemembers more than 36% APR on loans. First Investors Auto Refinance lets active-duty military members and their dependents apply for loans. Their interest rates are limited by the Military Lending Act.

Citizens of the United States can use First Investors Auto Refinance’s services, without a doubt. Permanent residents and holders of green cards are also eligible to apply. Applicants may be required to provide the following documentation to qualify:

  • Most recent pay stubs
  • A valid driver’s license
  • Identification or proof of residency

How Much Does Refinancing Cost?

Refinancing your First Investors financial services will cost between $15 and $449. In theory, refinancing costs nothing. On your first Investors Financial Services auto loan, there are no early repayment penalties, and the only fee is the fee charged by the Department of Motor Vehicles (DMV) to change the lienholder on your vehicle title.

However, depending on who you work with to refinance your first Investors Financial Services auto loan, you could be charged up to $449 in (hidden) fees. Check out our comprehensive refinance lender comparison to get a good idea of the costs associated with refinancing your 1st Investors Financial Services loan by a refinancing company.

How Long Does it Take First Investors Financial Services to repossess my vehicle?

Repossession laws vary slightly from state to state and range from 3 to 5 months after your first Investors Financial Services loan payment is missed. Each retail and installment contract—the contract you signed when you bought your car and the 1st Investors Financial Services loan—specifies what constitutes a default.

Some states and contracts even allow the lender to repossess the vehicle after 45 days, or about a month and a half. You are in default because you stopped making payments and have not paid the 1st Investors Financial Services late fees.

What happened to the first investors?

First Investors has developed a distinct business model that includes indirect and direct lending, portfolio acquisitions, and third-party servicing.

What company are the first investors?

First Investors was started in 1988 to help car dealers and consumers with their special financing needs.

Who bought First Investors?

Stellantis

“Acquiring First Investors supports Stellantis’ business in the United States,” Stellantis chief financial officer Richard Palmer added.” “This is an important strategic move that will help us extend our financial performance and create long-term value for Stellantis shareholders.”

Do First Investors Have a Grace Period?

Late or delinquent charges. In the case of non-payment, we charge 5% of the installment payment or a part of it. A 10-day grace period applies. We may charge the borrower attorney fees if they do not repay the loan.

First Investors FAQs

What happened to First Investors Corp?

Stellantis NV paid $285 million in cash to acquire F1 Holdings Corp., the parent company of Texas-based First Investors Financial Services Group, from an investor group led by Gallatin Point Capital LLC. Also, Stellantis is no longer the only major automaker in the United States without a captive financial arm as a result of the acquisition.

What is the new name for First Investors?

Stellantis Financial Services US Corp., which has been renamed First Investors, will serve as the foundation for Stellantis’ expansion of a full-service captive finance arm.

Who is the CEO of First Investors?

Tommy A. Moore, Jr.

Jr. Tommy A. Moore Mr. Moore is the President and CEO of First Investors, a company he co-founded in 1989.

References

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