There are both pros and cons to taking advantage of in-house financing options the next time you purchase a car from a used car dealership. Consider both the advantages and disadvantages of in-house financing carefully to figure out if it is the best fit for your financial circumstances. If you need help with your decision making, feel free to call one of our Corpus Christi native used car salesman at Texas Auto Sales to help you make the right choice!
Pro: Realistic Shopping
In-house financing does present a certain level of convenience to car shoppers. If you are planning on in house financing the purchase with the used car dealership you are buying from, most of the time your financial information will be handled first. This means the salesperson you work with will know what your budget is exactly before showing you a single car.
Pro: Bad Credit or No Credit
Used Car dealerships that offer in-house financing are more willing to work with a lower or lacking credit rating in order to get you in a car you can afford, and they need to sell. Approved in-house financing with the used car dealership will get you in the car you need and provide a way for you to build or improve credit. The used car dealership benefits from this, as well, through the car sale profits and the profits garnered from the interest on the loan.
Pro: Afford a Better Car
Even if your credit and finances allow you to pay cash for passable used car, in-house financing can get you behind the wheel of a newer, more comfortable, and better looking car. The first requirements for a used car should be that it runs and is safe for you and your passengers. It is nice to know, however, that the used car you purchased is a vehicle you can be proud of and will continue running for a while. Texas Auto Sales offers over 50 used cars on the lot that can make these two statements a reality.
Con: Higher Interest Rates
On average, the interest rates available with in-house car dealership financing are higher than those found with more traditional outside lenders. There are ways to work around these higher interest rates, such as increasing down payments and paying above the minimum monthly payments. You should keep the interest rates in mind while negotiating the financing for your car.
Con: Sales-Pitch Financing
Some car shoppers are concerned that the sales pitch they are receiving at the used car dealership will get in the way of receiving a sound financing offer. While it is true that the used car dealership wants to sell you a car, they also want to make sure you can afford the payment schedule. To set this concern at ease, prepare yourself with research and strict budgetary guidelines before you begin shopping at a used car dealership.
The pros of in-house car financing at a dealership make the shopping process easier and benefits people with bad credit. On the other hand, the cons are easy to work around through pre-planning and realistic expectations.
Next time you are in the market for a used car, chose Texas Auto Sales in Corpus Christi, Texas for all of your in house financing and buy here pay here needs. We have sales associates that are local natives of Corpus Christi and now the challenges of purchasing a used car and are ready to help you today! Call Texas Auto Sales in Corpus Christi, Texas for the best experience in town at 361-356-7409.