If you need a new vehicle but are concerned about how you’ll pay for it, in-house car financing could be a viable choice for you.
In-house financing is ideal for those who don’t qualify for an auto loan from a bank or credit union, but it works well for other buyers, too. With in-house financing, you obtain an auto loan through the dealership where you plan to purchase your vehicle.
Loans through a dealership are offered with the expectation that buyers will keep up with monthly payments.
So, despite your credit situation, if you need a quality vehicle now, in-house financing is a good option to consider. Below, we’ll share three benefits of in-house car financing and what you can get out of it beyond the vehicle you desire.
Not only is in-house financing faster because you’re obtaining it directly from the dealership, but there’s no middleman, such as a bank, that you have to work with before obtaining the loan. The dealership does everything from setting up warranties and interest rates to arranging payment schedules. Often you can complete the entire buying process within hours. On the other hand, it can take days to get a loan through a third party.
If you have no credit history or bad credit, this might surprise you. Dealerships offering in-house financing rarely reject loan applications. In many cases, they are more willing to work with your budget to match you with a vehicle that you not only love but can afford. Applying is also easy. All you need is a photo ID, proof of income and anything else that proves you can purchase a vehicle.
If the dealership you’re buying from reports your on-time monthly payments to the credit bureaus, you can improve or build your credit just as you would with a bank loan. This makes it advantageous not only for those with low credit scores, but for any buyer. It can help raise your credit score further so you’ll qualify for lower-interest loans later, which is important if you plan to get a mortgage or other vehicles down the line.
Regardless of your credit status, if you need a vehicle for work and other life obligations, you don’t have to worry about in-house car financing. It gives you a great opportunity to get the vehicle you need while repairing or building your credit score.
The one thing to keep in mind is to keep up with monthly payments, paying them on time so you can reap the benefits of improving your credit. Defaulting on payments will only hurt your credit and risk the loss of your vehicle.
Every dealership has a unique in-house financing system, so it’s important to research each dealership you’re interested in to find one that offers a great rate for you. One place to consider for in-house financing is Auto Market of Florida.
We have a large inventory of quality and affordable vehicles, and we’re here to serve buyers in any credit situation. If you keep up with your monthly payments, we share your payment history with Equifax and Experian monthly to ensure your credit score improves.