How Are Dealerships Able To Offer In-House Financing?

If you have bad credit and find yourself in need of a new car, you’ve probably already started researching your options. Of course, your first thought was probably to try a traditional car dealership to see what they have available and talk to them about whether you can get financing from them or not. If you followed through with this, you most likely found out that they won’t loan you the money needed to make the purchase. They’re afraid of your low credit score.

You could go to your bank or another financial institution in town and try to line up a loan on your own. But that takes a lot of time. And honestly? They’ll probably turn you down, too, because often, they are the same institutions that traditional car dealerships use. Who wants to go through that embarrassment time and again?

Next option: Check out an in-house financing car dealership.

in-house financing auto dealershipYou’ve heard of these places, right? In-house financing car dealerships often go by other names: buy here pay here dealerships, on the lot financing dealerships, or similar names. They all mean basically the same thing. These dealerships claim to take care of the financing for you, making it easy for people with poor credit to buy a new or used vehicle. Sounds great, right? Almost too good to be true, especially if no banks are involved. Maybe you actually have a chance.

However...you’re a little skeptical. How does in-house car financing work anyway?

That’s a great question, and you’re right to be a little cautious. Not all in-house car financing works the same way, but most dealerships of this type will give you a loan for a new or used car if you meet their criteria. The criteria can vary from dealership to dealership, so make sure you ask questions if there’s something you don’t understand.

In-house car financing works like this. You fill out a credit application, it goes to the dealership, they take a look at it and determine whether you’re a good risk or not, and then they make you a loan for the car you’ve picked out. It’s pretty simple. These in-house financing car dealerships make loans using their own money rather than going through a bank. This means they can set the rules around who to loan to and what criteria they use to determine who qualifies for a loan. Many of these dealerships don’t worry about pulling a credit report. They know, based on the credit application, whether they will loan to you or not.

Sounds good but the process is probably really time-consuming.

Just the opposite. The sale process is typically much quicker than what you go through with a traditional financing dealership. You start by filling out a credit application, answering a few basic questions about things like your income, expenses, work situation, etc. Many dealerships have online forms that you can fill out from the comfort of home, making the process convenient for you. Then you head to the dealership. There, the finance team will talk with you about your situation, helping you determine how much car you can comfortably afford. The goal here is to get you some reliable wheels, not to pick out the latest hotrod to impress your friends with.

Once you’ve perused the inventory, taken a couple cars for a test drive, and settled on the one you want, the finance team goes to work filling out the paperwork and getting you set to hit the road. They do this every day, and they’re very good at what they do. You’ll be amazed by how quickly the process flows.

Make your payments at the same place you bought the car.

When you get in-house car financing, you make your payments to the same place that loaned you the money. These dealerships usually have several ways for you to make your payment each month: online, in person, by phone, via automatic withdrawal, and more. Each dealership is different, but they’ll let you know what your options are.

“Buyer beware” is always a good idea.

It’s good to make sure you have a full understanding of what you’re getting into when you work with an in-house financing car dealer. Always read the fine print before you sign anything. Not all in-house financing car dealerships are created equal. While most of them are on the up-and-up, there are always a few bad apples. Take a buddy with you. They can help you work your way through the process.

Or...visit a reputable in-house financing car dealership that has a reputation for taking care of its customers.

AutoMax in Henderson, North Carolina, is that kind of dealership. We’re an in-house financing car dealership with years of experience and hundreds of happy customers. With locations in Henderson and Youngsville, we’ve been serving customers in the area - including Raleigh and Durham - since 1989. We’ve built a business on helping customers purchase safe, reliable transportation at a price they can afford.

At AutoMax, we finance 100% of the vehicles we sell in-house. We don’t focus on the past. We look at your future. That’s why we don’t pull credit reports, and we guarantee approval to everyone who applies. We want to help our customers get back on their feet again. We do that by guiding you to a vehicle you can afford and then reporting your on-time payments to Equifax, one of the top three consumer credit agencies. Establishing a good payment history helps rebuild your credit score.

Don’t worry if you get in a jam with an unexpected expense. Our finance experts are real people. You can always call and talk to someone about your situation. We’ll work with you to make sure you get back on track.

So what are you waiting for?

Now that you understand how these in-house financing car guys work, you can get started looking for a new car. Chances are good that you’ll find it at AutoMax, so start there. You’ll be back on the road before you know it!

Adjust Payment Terms ×

We want to help you find the perfect car that fits your budget. Please adjust the options below so we can estimate the most accurate monthly payments.

Estimated Credit Score or Interest Rate

Desired Loan Term (months)

How much will you put down?

All tax, title and vehicle registration fees are additional. See dealer for complete details.