So if you’re wondering what In-House financing is, let us explain it to you. Typically, when the process of buying a new or used car begins, it starts with determining whether or not you will be able to qualify/get approved for a car loan, then obtain the car loan. Usually this journey begins with traveling from one bank to another, filling out loan applications that require you to provide an extensive amount of personal and detailed information, while all along, you may not even get approved. Other methods involve going to a car dealer that has lenders on-site or off-site that they due business with, which also requires you to provide a tremendous amount of information, and with them, similar to the banks, you may not get approved.
Advantages of In-House Financing
Well, with a Buy Here Pay Here Car Dealer, the difference is, the car dealer is the “Bank” or “Lender”. That’s right, not only do they own the all the cars on the lot that are being sold, but they loan the money to the car buyers when a car is purchased, thus the term In-House Financing. After the deal is complete and all the necessary paperwork has been filled out, you will now own the car and all payments will be made directly to the Buy Here Pay Here Car Dealer in which you purchased the car from. Also, chances are when you are doing business with a BHPH Car Dealer that offers In-House Financing, customers with Bad Credit or Poor Credit that would typically have trouble getting approved for a car loan at a bank or other financial institute, will be more likely to get approved. Other advantages with In-House financing is, it’s a one stop shop, the same location that you purchase your new or used car from will the same place that will provide you will the loan/financing for the car.