In house financing allows you to get a loan from a dealership. There are auto makers with specific lending wing for their vehicles (such as Toyota Financial Services and GMAC). They have these to sell more cars to more people.
In house financing is one of the options in financing a car. There are also other types of loan offered by banks and several credit unions. In house financing however grants a loan to individuals with no credit records. In addition to this, in house financing are very attractive to those with bad credit scores. This loan seems to be a customer-friendly option but it has its own downside. There are a lot of things about this loan that is still unknown.
Thus, it is important to find out the advantages and disadvantages of in house financing to help you decide on the best car financing option suitable for you. These things are written below.
1. Advantages of In House Financing
- In house financing gives individuals access to car loans when there are no other options.
- This financing option provides loans for individuals with no previous credit record.
- In house financing gives chances to those with bad credit records to improve their credit score by offering them loans that could boost their credit reputation.
- This kind of financing offer refinancing options to lower down the monthly payment.
- This is one of the most trusted financing deal offers as long as you pay on time.
2. Disadvantages of In House Financing
- In house financing most of the time goes with higher interest rates. Dealerships make a huge amount of profit because they can repossess the vehicle when the buyer is unable to pay some of its monthly bills.
- Dealership encourages buyers to purchase a car beyond what they can afford. They offer long term loans with lower monthly payments to attract potential customers. What the customer doesn