Is In-House Financing the Same as Buy Here Pay Here?
The world of car financing can be a confusing one. There’s a lot of paperwork that has to be filled out, and even those who consider themselves financially savvy may have challenges keeping everything organized. It’s also hard to keep all the terms straight. Buy here pay here dealerships have become very popular, but just as soon as you decide you might stop in and visit one, you come across something called an in-house car financing dealership.
So what gives? Are they the same thing?
The short answer is yes. Possibly. A buy here pay here dealership is often the same as an in-house car financing dealership. They both offer the same service: on-the-spot financing for a new or used vehicle. However, not all dealerships that call themselves buy here pay here truly offer in-house financing. There can be differences from one to the next that prove that not all dealerships are created equal.
Here are things you need to watch out for.
Some dealerships call themselves a buy here pay here dealership in order to entice people with bad credit to stop in and shop for a new vehicle. And this is fine - they might have one you’re interested in. However, here’s the catch. Many times these dealerships require a credit application from you, and then once they receive your application, they start shopping it around to banks, credit unions, and other lending institutions, trying to find someone willing to loan you money.
So here’s the reality: While these dealerships claim to offer in-house financing, what they’re actually doing is sourcing the loan from another lending institution on your behalf.
While this might seem like a helpful service, what they’re really doing is making your already shaky credit even worse. By presenting your loan application to several lending institutions - all of whom will pull a credit report on you - they’re actually hurting your credit score. Multiple hits on your credit report within a short time are bad; lenders don’t like to see that. So these buy here pay here dealerships are not helping the situation at all. And it’s quite likely that after all this, you still won’t be able to get a car loan. So you’re back to square one.
How do I know which type of dealership I’m at?
You need to ask questions once you get to the dealership...BEFORE filling out any credit applications. Ask the dealership what you have to do to qualify for a loan and where the financing comes from. Ask if they provide it themselves, or if it comes from a bank or other lending institution. If it’s the latter, chances are good that getting your “in-house” car financing from that dealership will do you more harm than good.
Also, make sure you ask if they pull a credit report or not. If so, you’re probably not at the type of buy here pay here dealership that truly offers in-house financing. You’ve most likely found one that likes to use the two terms - buy here pay here and in-house financing - interchangeably, hoping that you won’t understand the difference. If you suspect this is the case, you’d be better off moving on down the road and trying another dealership instead.
So are there any buy here pay here dealerships that I can trust?
Of course! Many in-house financing car dealerships do just what they say they do, and they do it with honesty and integrity. You just have to know where to look. The best way to find a legitimate buy here pay here dealership is to ask around. Check with friends, neighbors, and relatives to see if they’ve shopped at one they would recommend. You could also ask for recommendations on Facebook or other social media sites.
Many business directories like Angie’s List and Yelp have customer testimonials and reviews that can be very helpful. Do an Internet search on in-house financing car dealership near me and see what comes up. Then read through the testimonials and comments to see what kind of experience people have had at each place.
Here’s one you can trust for your in-house car financing needs.
AutoMax in Henderson, North Carolina, is a buy here pay here dealership that you can trust to handle all the financing for you - in-house! That’s what they do. AutoMax provides in-house car financing for folks with all kinds of credit scores, including bad credit or no credit. In fact, AutoMax handles the financing on 100% of the cars they sell! That means from start to finish, you’re working with a team of finance professionals that will walk you through the car-buying process, discussing your transportation needs to make sure you get into a car that’s the best fit for you.
The pros at AutoMax also help you figure out how much car you can comfortably afford. What kind of payment fits within your budget? Can you afford a down payment? What other monthly obligations do you have? All of these questions should be considered before signing on the dotted line. At AutoMax, you’ll have help figuring all this out.
Qualification is easy.
Qualifying for a loan at AutoMax is easy. Fill out the online prequalification form, and you’ll know within minutes whether you qualify for a car loan with them or not. And here’s a secret: AutoMax approves 100% of the loan applications they receive. That means it’s a safe bet that you’ll soon be driving away in a new vehicle!
AutoMax wants to help you!
AutoMax was started in Henderson in 1989 by two brothers who wanted to help people purchase pre-owned vehicles that were safe and reliable, and do so without breaking the bank. The company is still run by the same family today and has expanded to include a second dealership in Youngsville. AutoMax focuses on serving Henderson, Youngsville, Raleigh, and Durham as well as the surrounding metro areas, connecting customers with affordable vehicles that fit their budget. Visit AutoMax today for true in-house financing. You’ll see the difference!