Wouldn’t it be wonderful if we could buy our favorite car and pay in cash? It certainly would be, however, for most of us that would not be possible. So we instead, typically, borrow money for a car through third-party lenders, such as banks, credit unions, and even carmaker-associated lending companies. For a variety of reasons, however (Bad Credit, No Credit, Repo’s and many other situations) traditional lenders may not work with you. This is where the “Buy Here Pay Here” dealers or “In House Financing” dealerships come to the rescue.
BHPH financing means that you can avail a loan and make payments on it at the dealership where you purchased the car. With ‘Buy Here Pay Here’ loans, the car dealership acts as both the seller and the lender by offering in-house financing. So basically they act as car dealerships and banks at the same time.
When you purchase and finance a vehicle at a traditional car dealer, you select a vehicle, and then the retailer typically passes your data on to a network of prospective third-party lenders. You then make monthly payments to the lender that finances the loan if you are approved for a car loan. In the case of a ‘Buy Here Pay Here’ it works the other way round. The BHPH dealers verify your income and proof of residence, and do a few additional checks and verification (typically the approval is based on job time and income), and then determine a loan amount you qualify for and then show you cars that are within that range. If you have a job and stability, your chances of availing a loan from the dealeships that offer In House Finance are quite high.
Buy-here, pay-here dealerships (which usually advertise themselves as “No Credit Check” or “no credit, no problem” or “We finance anyone”) are especially appealing to those borrowers, who have been turned down by other credit avenues, in which case, BPHP is the last and best resort. However, loans from dealerships offering in-house financing may carry higher interest rates and may have some drawbacks, so doing some research, calculating and budgeting in advance is always advisable.
We list below the advantages of In-House Financing at Dealerships.
Fast and Easy Loan Approval Process: Getting a loan or pre-approved loan from other avenues can be time-consuming. You may have to spend extra hours or even days to get the approval whereas In-House financing in most cases its within the hour. Many documentation that would be needed in a traditional bank or finance company are not needed at In House Finance Dealerships.
Flexibility: For those with No credit or poor credit, the in house financing is more flexible when it comes to the approval of the loan. Most dealers do their best to be more accommodating and work with the borrower’s specific budget and help them pick the right car. Keep in mind that credit issues and the past history is not frowned upon
Build Credit: Most legitimate auto lenders report your payment activity to the credit reporting agencies such as Experian, TransUnion, and Equifax. This will have long-term benefits that pay off in the long run and help you in your future purchases since your credit will be more established. if you’re making regular on-time payments. Better credit also can help you to obtain lower interest rates on a mortgage, car loans, credit cars & more.
If you are looking for a Buy Here Pay Here dealership, look no further! Houston Direct Auto is at your service. We are BIG on financing! No credit? Bad credit? Low credit? Approved!
We are one of the best and trusted used car dealerships in Houston, Texas that has helped thousands of customers get the car they want, with our in house financing we make the approval process simple. Check out our website www.houstondirectauto.com for more information.