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Key Benefits of Dealer Financing

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Getting an auto loan from the bank is a tough process. Especially for people with bad credit and no down payment, dealership financing is the best alternative. Still skeptical about this? No worries, here’s a list of key benefits of this financing option.

But first, let’s define what is in-house financing? This is the direct route of payment made by car dealers. They can offer this loan option. Usually, this type of loan has higher rates and a different set of conditions.

Buy here, pay here.

We live in a fast-paced world, so we are quickly attracted to services that are hassle-free and instant. This is what in-house dealership aims to offer. Instead of waiting for long approval from banks, this route promises cars deals in one stop. You can take care of the whole transaction in one visit, considering you understand correctly the terms and conditions provided.

You can finance a car with 10% down payment and take as long as 72 months contracts. But usually, the condition is 20% down payment and 60 months to pay.

Bad Credits and No Down Payment

Dealership financing caters to high-risk accounts. It doesn’t matter if you have low credit or no down payment as long as you comply with their criteria. You only need to show proof of income or employment and other necessary documents.

Flexible Arrangement

You and the dealer can make a deal to settle necessary financial arrangements. Unlike bank financing where you can’t negotiate rates, a dealership is a go-to alternative for people with a limited budget. A salesperson assists you to craft a personalized monthly payment plan you can afford.

Wide Selection

Seeing the tangible products will encourage you to be more at ease on your purchases. You can also request for special add-ons like leather seat, smartphone integration, etc. However, to save money on your auto loan, it’s not recommended to splurge on extra features.

Dealerships financing also offers a wide selection of cars, your choices will not be limited. Your dealers will be also happy to assist you to choose the right car for your budget.


  1. Purchasing a car with only one stop might be convenient. But remember, you can still find better rates. If you’re dead set on getting the best deals, go for an extensive car shopping.
  1. Understand the fine print before you indicate anything. Don’t be fooled by the dealer’s pitch. They might disarm you with humor and promise all they want. But not until it’s not on paper, watch out.
  1. Be wise in choosing and know all condition first. A salesperson will entice you with trade-in offer or discount on the total price. The good thing to do is ask for the total charges.
  1. Pay hefty chunks of down payment. This way, the remaining balance and the interest will be much lower.
  1. Don’t be fooled by low monthly payments. Chances are the contract will much be longer. And it will make the overall interest charges accumulate.
  1. Be on the look-out for hidden charges.
  1. Know your credit score before car shopping. This way you know if you indeed have a bad one. In-house dealership financing offers much more competitive rate for people with higher credit score. But if you find you possess one, you can still fix your credit score. You can reach out to CreditRepairCompanies.com for legal intervention.
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