What Does In-House Car Financing Mean?


photo by Scott Graham via UnSplash

When shopping for a vehicle, you might come across the phrase “in-house financing”. What exactly does that mean? In-house financing means that you borrow money directly from the dealership to finance your new vehicle. Often called buy here pay here dealerships, in-house financing dealerships let you buy and finance a vehicle in one place. All loan and interest payments go back to the dealership instead of a bank. By offering this service, many dealerships can complete more deals and accept more customers. Our used car dealership in Miami Gardens, Miami Car Credit, is a buy here pay here dealership that offers in-house financing for loan approval for drivers with bad credit. Use this guide to learn why you should consider in-house financing when shopping for your next used car in Miami Gardens.

In-House Financing & Loan Approval Rates

Since you’re eliminating the need to use a bank or other financial institution to approve your credit application, the entire process tends to be simpler and easier. Auto dealerships can set their own standards for underwriting, which typically means that a greater number of borrowers can seek approval. These potential borrowers might also be able to secure a loan with a lower credit score. Many financial institutions require borrowers to have a specific credit score, but dealerships might allow those with less than stellar credit to qualify.

In-House Financing vs Bank Loans

Another benefit to in-house financing vs. a bank loan is that dealerships have a more simplified lending process. You can apply for credit instantaneously once you’re ready to purchase a vehicle. Point-of-sale financing gives you a credit decision within minutes, and you’ll be able to close the deal within the same day. There’s no need to visit several banks, credit unions, or websites and fill out numerous applications. You fill out one application, and the dealership takes it from there.

Your Credit Scores Is Not The Only Factor for Approval

When you’re looking at getting a loan through traditional means, most financial institutions take one look at your credit score and make a snap decision. They don’t know or care as to what happened to you to cause your credit score to be the number it is. You might be making huge strides to bump up that number, and it can be frustrating when nobody asks what you’re doing to improve your financial outlook.

With our in-house financing program, our used car dealership looks at you as more than just a credit score. While your credit score is important, they will also look at your job situation, your residence, and other improvements you’ve made. Even if you have a decent credit score and have proven that you have made changes to your financial habits, you might be able to obtain better interest rates than you would through a traditional lender. We’ve helped hundreds of drivers get approved for a car loan in Miami Gardens thanks to our in-house financing program. To discuss your personalized financing options, please contact our finance team today.

In-House Financing With Flexible Payments

When working with in-house financing, you have more flexibility and freedom when it comes to financing. Sometimes even meeting face-to-face with the person who decides your financing options can work in your favor. You also have the ability to negotiate payments. For instance, if you’re not able to afford the 20% down payment but can still afford a higher monthly payment, you could suggest that option. Another instance is if you have more money upfront but want a smaller monthly payment. Overall, you typically have more power when working with in-house financing.

Car Payments Improve Your Credit Score

As mentioned, if you have poor credit, securing a car loan via in-house financing is usually easier because the dealership might be more lenient on how it views your financial picture. You can’t borrow more than you’re approved for, and you have a set timeframe in which to pay back the money. Dealerships guarantee loans to anyone regardless of their credit history by simply adjusting the terms of the loan based on the amount of risk the borrower represents.

Once you secure financing, making timely payments on your customized car loan can help you establish good credit and push your score up. Keep in mind that even if you end up temporarily paying a higher interest rate than you would if you secured the loan via a traditional lender, you can always refinance your loan with the dealership later once your credit improves. You can also pay down your loan faster to avoid paying the extra interest expense, giving you a tremendous amount of savings.

Find Financing & Car Loan Approval for Poor Credit in Miami Gardens

If you’re ready to purchase that new vehicle, consider in-house financing with Miami Car Credit. You can either fill out an application online or head into our dealership and ask to speak with someone in the finance department. Our experienced staff members will walk you through every step, which includes selecting a vehicle that fits your monthly budget and your needs. Don’t wait another minute to drive home in your dream vehicle today.



Visit Our Buy Here Pay Here Dealership in Miami


Miami Car Credit, Northwest 2nd Avenue, Miami, FL, USA

Miami Car Credit 25.952605009401754, -80.20620470263437.