In House Auto Financing Explained
In house auto financing is a popular method of financing a car purchase that is offered directly by the dealership instead of a bank or other financial institution, but is In House Auto Financing Good or bad? In this type of financing, the dealership acts as the lender, providing the loan to the buyer. While some may be hesitant to choose this option, there are numerous advantages to in house auto financing that make it a great choice for many buyers, especially if there are no other options or lenders who will approve the car loan. Read more to find out why in house auto financing is good or not?
Advantage #1: In House Auto Financing offers a Streamlined Approval Process
One of the biggest advantages of in house auto financing is the streamlined approval process. Since the dealership is providing the loan, buyers can often get approved more quickly than they would through a traditional lender. This can be particularly helpful for buyers who have poor credit, and may not qualify for a traditional car loan through the bank.
Additionally, the approval process is often more personalized when working with a dealership. They may be more willing to work with buyers on finding a car loan that fits their specific financial situation, rather than simply relying on a set of predetermined criteria like a bank would or other lender might.
Advantage #2: In House Auto Financing has More Flexible Loan Terms
Another advantage of in house auto financing is the ability to offer more flexible loan terms. Since the dealership is not bound by the same regulations as a traditional lender, they can often offer more creative loan packages that may include shorter or longer loan terms, or even balloon payments at the end of the loan.
Additionally, dealerships may be more willing to negotiate on loan terms than a traditional lender would be. This means buyers may be able to get a loan with a lower interest rate, smaller down payment, or other favorable terms that they may not be able to get through a bank.
Advantage #3: In House Auto Financing offers One-Stop Shopping
Another advantage of in house auto financing is the convenience of one-stop shopping. When buying a car through a dealership, buyers can often handle all aspects of the purchase in one place. This includes financing, the purchase of any accessories or warranties, and even car insurance.
This can be a huge time-saver for busy buyers who do not want to spend hours shopping around for different services and products related to their new car.
Advantage #4: In House Auto Financing has Better Customer Service
When working with a dealership for in house auto financing, buyers often receive better customer service than they would with a traditional lender. This is because the dealership has a vested interest in making sure the buyer is happy with their purchase and loan terms.
Additionally, the dealership may be more willing to work with the buyer if they encounter any issues during the loan process or if they need to adjust their loan terms down the line.
Advantage #5: In House Auto Financing Lower Interest Rates and Fees
One of the most appealing advantages of in house auto financing is the potential for lower interest rates and fees. While this is not always the case, but dealerships may be able to offer lower rates than traditional lenders due to their ability to negotiate with buyers and their access to a wider range of financing options.
Additionally, dealerships may be able to offer lower fees than traditional lenders. This is because they do not have to pay the same fees and commissions to third-party lenders that a bank would, which can result in lower costs for the buyer.
Advantage #6: In House Auto Financing has Access to Special Programs
Finally, in house auto financing may give buyers access to special programs and promotions that they would not be able to take advantage of with a traditional lender. This could include things like cash-back offers, zero-percent financing, or other incentives that are only available through the dealership.
Overall, in house auto financing can be a great choice for some buyers. With advantages like a streamlined approval process, more flexible loan terms, better customer service, one-stop shopping, and access to special programs, it is easy to see why this option is very popular. If you are in the market for a new car, need an equity loan, cant get approved with traditional lenders and banks, consider exploring in house auto financing options at your local dealership to see if it is the right fit for you.
Want to learn more about In House Financing and how it works?
Apply for In House Financing here, or call us at 1-855-227-1669 to learn more.