If you’re struggling to get approved for a car loan, you might consider a car lot with in-house financing. These dealerships offer financing directly to buyers, cutting out traditional lenders like banks. This can be a big help if you have less-than-perfect credit and need a vehicle.
Benefits of In-House Financing
There are some definite pluses to getting your car loan directly from the dealership.
Accessibility for Challenged Credit
In-house financing car lots often specialize in working with customers who have bad credit or no credit history, and they tend to have high approval rates. The application process is often simpler and faster than applying for a traditional car loan.
Convenience and Speed
It’s one-stop shopping: you can choose a car and secure financing at the same location, and decisions are often made faster than at banks or credit unions.
What to watch out for at in-house financing car lots
While in-house financing can be helpful, it comes with a few potential drawbacks:
- Higher interest rates: You’ll probably pay more in interest compared to traditional lenders.
- Limited selection: You may not have as many vehicles to choose from.
- Tricky terms: Be sure to understand all the terms of your loan, including interest, fees, and the repayment schedule.
In Closing
In-house financing can be a good way to get a car, but it has pros and cons, so it’s not right for everyone. Before you commit to a car loan, compare all the financing options available to you.