Benefits of On The Lot Financing vs. Traditional Dealership Car Loans

What are the Benefits of On The Lot Financing Over Traditional Dealership Car Loans?

Most people in Wichita need a car. Long commutes and public transportation that is either absent or inconvenient are just two of the factors that make owning a car a virtual necessity. But how is a person that has come onto hard times in life and has consequently had credit issues supposed to get reliable transportation? This is where On The Lot Financing comes into play.

During a previous recession, used car dealerships realized that there were many people who needed a car and had the ability to repay a loan for such, but the banks weren’t lending money to them. During recessions and times of economic upheaval, banks often almost close up shop, offering loans only to people who already had collateral and didn’t badly need a loan in the first place.

Some used car dealerships therefore decided to take matters into their own hands and offer the financing themselves, cutting out the banks that were refusing to lend money to people with good jobs. These used car dealerships with in-house financing were later termed On The Lot Financing or Buy Here Pay Here, and they revolutionized the used car industry.

Today, a vast number of dealerships run on the Buy Here Pay Here model and larger nationwide dealership chains are involved. On The Lot Financing has been legitimized and it’s an excellent alternative to the stuffy traditional car loans that are still virtually impossible to get for most people.

Why Is on the Lot Financing Better?

Buy Here, Pay Here dealerships in Wichita are a solution for people who are experiencing credit issues. The lending entity and the dealer are one and the same, which for the customer means that the overall car buying experience is much more streamlined than that of a conventional dealership car loan.

While at a traditional dealership the credit application will be submitted to a separate financial institution that does the actual financing, in the case of Buy Here, Pay Here dealerships in Wichita, as the lender is also the seller, the application will always be reviewed in-house.

Dealerships offering On The Lot financing will always have trained credit consultants available who will first make sure they have a proper understanding of both the customer’s financial situation and his needs, then come up with down payments and payment schedules that fit the customer’s profile.

This type of unconventional approach to car loans means far greater flexibility for the customer. It’s in a dealer’s best interest, in this case, to tailor the loan to the specific financial situation of the customer and at the same time ensuring the vehicle is kept affordable.

Is On The Lot Financing Easier to Get Than a Traditional Loan?

Customers with credit issues will also see another advantage of the On the Lot Financing over traditional car financing — the conditions that have to be met in order to qualify for a loan. While a traditional car loan will take into consideration credit history, to qualify for most On the Lot Financing loans the customer only has to meet some basic criteria like being 18 or older, holding a valid driver’s license and having a net income of at least $1,200 per month.

Once these simple conditions are met, the loan can be approved in a configuration that suits the potential customer’s needs and financial circumstances, regardless of credit history.

Overall, the process is simple when compared it to the conventional route. The documentation needed is limited and simple enough, usually consisting only of a driver’s license, some recent pay stubs, and proof of address documents like a phone or utility bill.

Is On The Lot Financing Safe?

It is clear that the process is much more approachable regardless of credit history but some may have concerns regarding the overall car buying experience. Are dealerships that offer On the Lot Financing in Wichita a valid car shopping solution or just a last-resort option?

The market polices itself and any shady dealerships of the past have disappeared. In the age of online reviews and social media, less than proper business practices can no longer be swept under the rug. This has had a positive effect on the quality of the businesses operating in this market.

Are There Many Cars on Offer?

When it comes to inventory, Auto Now offers a vast vehicle inventory, making finding the right vehicle an easy task. Over 500 vehicles are typically available at a time. While most dealerships will use a variety of sources for stocking up their inventory, they also have car-vetting processes that uses independent mechanics to assess vehicles’ conditions and their worthiness to be on the lot.

No longer are the customers of Buy Here, Pay Here lots constrained to buying what they can find — now they are able to buy what they actually need and afford.

Can You Get a Warranty with On The Lot Financing?

Not long ago, warranties were synonymous with conventional car lots, but this no longer applies. More and more businesses working the Buy Here, Pay Here market have chosen to offer their customers comprehensive warranty programs that act just like a normal car warranty covering the vehicle for an issue that could leave the customer stranded by the side of the road.

While there are exclusions, just as in the case of traditional warranties, and while there is usually a deductible that needs to be paid, the peace of mind offered is priceless. A customer missing work because of a breakdown will have the potential to miss payments, and nobody wants that.

For all types of customers regardless of credit history, Buy Here, Pay Here car lots in Wichita are a valid option because we are simplifying the experience, making it more streamlined, and offering at least the same level of service and quality of vehicles as traditional car dealerships.