What Is In-House Financing at a Car Dealership?


Many car dealers are still doing business, even during the coronavirus outbreak. Before and during the COVID-19 crisis, our Buy Here Pay Here (BHPH) dealership in Hawthorne has provided in-house financing to help consumers afford to buy a used car. Hawthorne Auto Square works with customers regardless of their financial situation when lenders and other car dealers have turned them down.

What Is In-House Car Financing?

When it offers in-house financing, a dealership issues a loan to the customer, bypassing their financial institution. Third-party lenders and credit unions aren’t involved when customers purchase cars. This simplifies the financing process. Common in the automobile industry, in-house auto financing is often available immediately thanks to point-of-sale financing services and mobile apps, along with the technology firms supporting them.

In-House Financing Qualifications

Vehicles are expensive and in-house financing may seem rosy. Nonetheless, there are qualifications, albeit fewer ones than with subprime lending, which uses your credit score to determine whether you qualify for financing. In-house dealers don’t. They may not even check your credit history at all.

What does matter is your income and how much you can put towards a down payment. Your type of income isn’t much of a factor. But it is helpful to earn $1,500 to $2,000 per month, pre-tax, to make sure your purchase is affordable. This is around the same that subprime lenders require. However, it can be W-2 income or not.

The dealership will walk you through the process. And, because they are interested in helping you make a purchase, they’re on your side when seeking a car loan. During the process, the dealer will help you select a vehicle that fits in your monthly budget. Repayment terms and interest rates can be adjusted to make your vehicle more affordable.

Benefits of In-House Financing

There’s no need to deal with banks and creditors with stricter qualifications. Borrowers with credit problems or no credit history can still be approved for an auto loan. The dealer takes on the risk while customers who ordinarily would not qualify for a loan can be approved.

The process is fast and easy. Many in-house financing dealers offer same-day approval, so you can get financing and purchase your vehicle in one visit. It usually doesn’t take longer than a day. You can also discuss your financial situation openly with the dealership and they will work with you. And, you’re not limited to payment terms that make borrowing funds unaffordable.

With in-house financing, you can decide how much you want to spend and work with the dealership on those terms. The business will also help select a repayment schedule that works best for you. It’s possible to negotiate weekly, bi-weekly, or monthly deadlines to submit your payment installments.

Get Approved for In-House Financing at CarWorld

One of the largest Buy Here Pay Here dealerships in Hawthorne, CarWorld has more than 300 vehicles in stock, including some of the most popular brands. We offer high-quality vehicles and financing options so you can pay a low APR or take five months to build your down payment. We’re also open during the COVID-19 crisis and have taken measures to guarantee our customers are protected. Our COVID-19 response includes keeping our facilities clean, making sanitizing gel and foam stations readily available, and enforcing hand washing and social distancing rules. These adjustments are having little impact on our in-store operations.

To learn more about our financing options and receive friendly assistance with buying used cars on our lot, visit CarWorld in Hawthorne or give us a call at 833-219-9951 to schedule an appointment.

Author: CarWorld