Buyers that have bad credit or don’t have credit will not be able to get approved for a bank loan or standard auto financing. In-house financing enables car buyers with bad credit to still get an approval for auto financing through the auto dealership. In-house auto financing enables anyone to get an auto loan providing they can show they have enough income coming in monthly.

The car you purchase at an in-house financing dealership will probably be a used car with a high interest rate and high miles.

What Exactly is an In-House Financing Car Dealership?

An in-house financing car dealership is one that provides car financing to buyers at their location. Meaning the dealership that that you purchased the car from is also the location that you make your car payments at. In-house financing car dealerships are commonly called “buy-here, pay-here” dealerships. In-house financing auto dealerships aren’t required to get approval from a lender or financial institution to offer you an auto loan. In-house financing dealerships establish their own financing terms.

Pros and Cons of In-House Financing Dealerships

In-House Financing Dealerships Pros

The pros of in-house financing car dealerships include:

• Credit Isn’t Needed. In-house financing auto dealerships will sell a car to people with no or bad credit. Meaning you can purchase a vehicle despite what their credit score is.
• Low Down (O.A.C. – On Approved Credit) Payment. A lot of dealerships offer $500 down (O.A.C. – On Approved Credit) on used cars. Meaning you can drive away today for a low down payment of $500.
• Makes Payments Easy. You make your payments where you purchased the vehicle. Making the process easier.
• Approval for Everyone. Everyone is able to get approved for in-house financing providing you make sufficient income to show you are able to make the monthly payments.

In-House Financing Dealerships Cons

The cons of in-house financing car dealerships include:

• Interest Rates Are High. When providing auto loans to individuals with bad credit, there is typically risks involved. With this risk, “buy-here, pay-here” dealerships have higher interest rates to guarantee they get a return and by covering their risk.
• Upside Down on Value. Typically, car dealerships that provide in-house financing will charge a considerable amount for the car that the amount you’re paying is in fact, more than the car is worth. Nevertheless, even with a standard financial institution or credit union loan, directly after you drive off the lot, the value of your car decreases.
• Won’t Increase Credit Score. In a lot of cases purchasing a vehicle at a “buy-here, pay-here” car dealership will not affect your credit score since they don’t report your payments the credit bureaus.
• GPS Installed in The Vehicle. In-house financing auto dealerships usually will install a GPS tracking device to make sure they know where their vehicle is at all times. When you stop making your payments, they will track it down and repossess the car.

How to Find In-House Car Dealerships & Car Lots Near Me

There are a lot of ways to locate ”buy-here, pay-here” car dealers in your area. When you’re searching for ”buy-here, pay-here” car lots, Trust In-Power Motors 2 for all of your Used Car needs. Ways to locate “buy-here, pay-here” car dealerships include:

1. Ask Friends and Family Members for Referrals to In-House Car Dealers

Your friends or family members might have previously used a good in-house car dealer. Ask around to see if they know of an inexpensive dealership that can help.

2. Utilize Search Engines Like Google.com to Locate In-House Car Dealerships

Use Google.com and search for “car dealerships with in-house financing near me” and search the map listings to find the leading “buy-here, pay-here”  dealerships.

3. Use Online Directories to Find Used Car Lots That Have In-House Financing

Online directories such as Yelp offer lists of the best in-house financing car dealerships near your location. Searching for the highest-rated in-house financing auto dealerships? You’re sure to find them on this useful website.