What Are In-House Car Financing Dealers?

April 28th, 2021 by

Financing page close up

To state it simply, in-house finance car dealers provide financing through the dealership itself, meaning that you’ll make payments to them instead of to a bank. While you’ll still need to be approved by the lender, in-house financing gives you a better chance of getting the approval you need for the new car, truck, or SUV you want. Learn more about in-house financing before you apply for financing with Sam Leman Automotive Group! 

In-House Financing Car Dealers

With in-house financing, you are borrowing money from the car dealership rather than from a bank or other financial institution. This can be particularly beneficial to you if you’ve had issues getting approved for a car loan based on your credit score, since the dealership is motivated to sell you a car. In-house financing dealerships, also known as “buy-here, pay-here” dealerships, are able to set their own approval requirements for car loans, meaning you may have more financing options available to you.

Benefits of In-House Financing

In-house financing car lots can potentially save you money in the long run and get you behind the wheel of your new car faster. Other advantages of opting to finance through a dealership include:

  • Easier pre-approval
  • Extended warranties
  • Flexible interest rates
  • Higher credit score

If you’re trying to boost your credit score, deciding to apply for in-house financing can be the answer. It will be easier to qualify for a loan, and as long as you keep up with your monthly payments, your credit rating will improve. An extra bonus is that in-house financing cars typically come with warranty coverage for all basic maintenance services, so you’ll be able to save money on oil changes, tire rotations, and more.

Important Details of In-House Financing

Whether you decide on in-house financing near Central Illinois or prefer to finance with a bank, it’s important to pay attention to the fine print to ensure you are agreeing to the most favorable terms and interest rate available. Unfortunately, there are car financing scams out there to be aware of. Some things to watch for when dealing with in-house financing car lots include:

  • If they allow you to leave the lot before agreeing on the payment term.
  • ”Approved” vs. “approval” – if the manufacturer approves the dealer, they are approved and have higher standards for quality whereas the latter might not.
  • If the car dealer doesn’t report to a credit bureau.
  • If you get a call saying your financing plan fell through and need to provide more money, or they say that the interest rate is higher than previously quoted.

Get Flexible Financing with Sam Leman Automotive Group

When you choose to finance with Sam Leman Automotive Group, you’ll enjoy an easier pre-approval process and be able to get beyond the wheel of your new car faster than ever. We offer exciting new specials, as well as used vehicle offers that can make your purchase even more affordable. Learn more with our financing options by contacting us today.


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