Typically when we talk about auto loans we think about banks or car companies that finance vehicles, but there is also car loans in house finance by auto dealers that work with people that have bad credit. Most commonly known as Buy Here Pay Here car dealers because they not only sell the customer a vehicle, but they also work as the bank by making in house financing auto loans.
In House Financing Before Cars
The practice of in house financing has been around even before there were automobiles. Years ago sellers would allow people to purchase goods or services and workout a payment plan and then they would shake hands and have deal. Things have changed dramatically since then, but car loan in house finance is alive and well. In fact it is growing because more and more people are seeing their credit score slip or drop for many different reasons ranging from economy to divorce.
When it comes to in house financing auto loans the auto dealership or car lot prepares an agreement or retail installment contract that must adhere to government regulations and spell out all conditions and terms. The process is the same as working with almost any lender except that the decision to approve or deny the car loan is done by the dealership and not a third party lender.
A Need for In House Finance Auto Loans
The reason for car loans in house finance is because there are car buyers that cannot get financed by any of the traditional banks or auto lenders. Once a person has filed a bankruptcy, has large medical bills or has had credit problems because of divorce or tax liens most financial institutions will not approve them for an automobile loan. However people still need cars to get to work, go the store; take kids to school and all the other things that life requires. The person with bad credit needs a car like almost everybody.
Like any business there must be a need in order to justify the business. The need for car loans in house finance has been the catalyst for the Buy Here Pay car dealer industry. Most traditional car dealerships have their hands full selling and servicing automobiles to customers with good credit and the BHPH car dealer is a specialist when it comes to understanding the car buyer that needs in house auto financing because they have credit problems or issues.
When you have credit problems and you need to buy and finance an automobile there are limited options. Your best bet may be an in house financed car loan from a local BHPH car lot or dealership. Get Approved!
Visit the Main Buy Here Pay Here Car Dealer Directory
Get Pre-approved Before Visiting the Dealer!
Do You Really Need In House Financing for Car Loans?
