Purchasing a new car can be a huge financial commitment. In fact, next to a new home, it can be the largest investment you make. Many North Carolina residents spend a majority of each day behind the wheel, so selecting the perfect car takes time and energy. You want to find the perfect fit for you, your family, and your lifestyle!
That said, purchasing a new car also has financial implications. Chances are you don’t have the cash flow to pay for your new ride up front. A loan or some other sort of financing is generally the norm when it comes to a new car purchase, and for those with poor credit (or no credit), this thought can create a hopeless predicament. No matter how you’ve managed to ruin your credit (a silly mistake in college or a failed entrepreneurial venture), the reality remains the same. It’s challenging to obtain financing with poor credit.
If you find yourself in this boat, don’t panic! There is a way out of the bad credit hole. On the lot car financing is an alternative to a conventional loan, and it can help you get back on your feet. These in-house car financing dealerships create a pathway to a new vehicle that you may not find elsewhere. If you know your credit won’t pass the rigorous vetting done by a third party, this may be a viable option for you.
Working with an in-house car financing dealer can seem pretty overwhelming if you’re not well-versed in the basics. At a glance, in-house financing means that the dealership offers customers special financing rates through the dealership. The dealer takes on the risk of financing the car in exchange for the profits earned from interest. Unlike some of the larger financial institutions that generally issue loans, on the lot car financing dealerships are less likely to do the deep digging into your credit score. This is great news for those with poor credit as your chance of obtaining financing for your new ride is dramatically increased.
You may be scratching your head and thinking, “this sounds too good to be true.” Nothing could be further from the truth! The dealer benefits from making the sale, but you benefit, too. After all, if you can’t obtain financing, you most likely can’t make the purchase. While many dealers are interested in turning over inventory and increasing sales throughout the month, some dealers - like AutoMax in Henderson, North Carolina, for instance - actually want to help people with bad credit purchase reliable transportation. If you try to finance through a traditional third-party lender, there’s a good chance you’ll be shut down. You lose, but the dealer loses, too.
There are some definite advantages of working with an in-house car financing dealer. One of the most apparent is that you may actually be able to afford your new ride! Working with an on the lot car financing dealership gives you the chance to need to start over. Loan approval time is also quicker than working with a traditional financier. At AutoMax, not only will you be approved in minutes, you’re guaranteed to be approved.
The other major advantage is that this process provides you an opportunity to start repairing your damaged credit. With timely, consistent payments, your credit score may improve. Be sure you work with a dealership that reports your on-time payments. The opportunity to start fresh is something you don’t want to overlook and is one of the biggest perks to on the lot car financing.
As with anything, there are two sides to the coin. With in-house car financing, the dealership is taking on a risk most other financiers won’t touch. When you finance in-house, you’ll generally pay a higher interest rate than you’d get with a bank or other third party lender. These dealers know your options are limited if you have bad credit; since they’re carrying the loan themselves, they’re more likely to charge an interest rate that’s close to the legal limit as determined by your state. As a consumer, you’ll want to do your own research and negotiate the rate if you can. If you’re well-versed on market trends, it’s a lot easier to put up an argument for different loan terms.
AutoMax was started back in 1989 with the sole purpose of helping people with credit challenges purchase reliable transportation. We know that you can’t take your life anywhere without wheels. We help take the stress out of buying a used car by handling all the financing paperwork for you, and we’ll work with you to ensure that your new vehicle fits within your budget.
In-house financing offers a great gateway to owning a new car if your credit is not up to par. While you may initially feel a bit frustrated at paying a higher interest rate, remember that this is just the first step to rebuilding your credit. Once you get your foot on the right path, you can quickly begin to work on your credit score, which may lead to bigger and better options for you in the future.
AutoMax dealerships in the North Carolina metro areas of Raleigh, Durham, Youngsville, and Henderson offer in-house financing with your best interest in mind. We offer a wide selection of used vehicles and are happy to walk you through your first car purchase with us. We have flexible term options and a friendly sales team who will make you feel safe and taken care of throughout the buying process. Visit one of our North Carolina locations today and ask about our on the lot financing options. We are here to help!