How Does In-House Car Financing Work?

With in-house car financing, the dealership not only sells you the car but it handles the financing in-house too. Technically, many of the in-house financing dealerships near 79th & Wornall in Kansas City use a separate company to underwrite their own loans, even in this case from a buyer’s perspective the financing and the purchase of the vehicle is all done in one place.

In-House Car Financing Is Easier to Get

In-house car financing in Kansas City is perfect for those who have bad trouble with credit in the past. Getting a loan is not predicated on your credit score, and the in-house car financing company can set their own terms on who can be lent money to and how much they can be lent.

In-House Financing Is Better for Your Credit Rating

When you go to a bank for financing, they will run a credit report on you to judge whether you can be trusted to repay the loan. The running of this credit report in itself causes your credit rating to fall. Simply looking for a loan – particularly if you shop around and try to get the best deal – results in a dent to your credit rating.

While you have a loan out at the bank, it will be recorded on your credit report. This will show that you are in debt, causing your credit rating to fall.

In comparison, most in-house vehicle financing companies in and around Kansas City don’t run a credit check, so your credit is unaffected by your new loan. In fact, it is often the case that the in-house lender will report to credit agencies when you’ve repaid your loan, so at the end of your loan period, your credit rating will have improved.

In-House Financing Is Faster and More Convenient

With everything done under one roof, the purchase of a car feels the way it always should have. You can drop into our 79th and Wornall location (or one of our many other Buy Here Pay Here car lots in Missouri and Kansas), find out how much you can borrow, get the financing at the same time, and choose your vehicle from the vast range on the lot, all in the matter of an hour. Alternatively, you can browse the inventory of quality vehicles we have on our in-house financing car lots on our website, choose the vehicles you’re most interested in, and enquire about the financing online.

How Does an In-House Financing Dealership Decide Who to Lend to?
Because in-financing dealerships are not constrained by external lenders, it’s up to each dealership to choose its own metrics for who they will offer loans to and on what terms.

Some dealerships will continue to offer relatively restrained lending terms, only offering loans to people with a sizable income who have been in their current job for some time. Others will take into account whether the borrower has existing collateral.

Larger in-house financing dealerships and those with financial backing from an external lender can afford to offer financing to borrowers who would traditionally be considered riskier. If there is increased potential risk for the lender, this may be offset by a higher interest rate on the loan.

Is In-House Car Financing Good Value?

When in-house financing dealerships first started showing up in the 1970s, they were not as competitive as banks and credit unions but they served an important purpose offering vehicle loans to people who couldn’t get a loan through other means.

Quickly, as more players entered the market, in-house car financing became much more competitive. Interest rates on loans have consistently dropped and profit margins have become thinner. With the increased competition, in-house financing operators must work hard to secure your business, and that means even better interest rates for the consumer.

Certainly, where users have a poor or short credit history, in-house financing is a very competitive choice and has a great number of other benefits.

In-House Car Financing in Kansas City, Missouri

Auto Now is a Buy Here Pay Here car dealership chain with six locations in the Kansas City, Missouri area (Independence, Belton, Topeka, Olathe, Wichita, and 79th & Wornall). With one of the largest inventories of quality vehicles in Missouri, Auto Now is the obvious choice if you are looking to buy a used car in Missouri.

At 7901 Wornall Road in Kansas City, we are open from 9 am until 6 pm every day except for Sunday, when we’re closed. On Monday, Tuesday, and Thursday, we stay open until 7 pm for that extra bit of convenience.

Can You Still Get a Warranty at an In-House Financing Car Lot?

Yes, in fact, all of Auto Now’s vehicles come with a 24-month/24,000-mile warranty. Should anything go wrong with specific parts in the vehicle during this period, the dealership will cover the cost of repairs minus a $200 deductible.

The limited warranty is similar in scope to an extended warranty direct from the manufacturer. Covered are the engine, transmission, electrical systems, heating and cooling, brakes, transfer case, steering, and suspension, among other mechanical items.

Instead of worrying about whether you’ve purchased a vehicle that has seen better days, buy from Auto Now that stands behind every single vehicle with this excellent warranty.

Are There Any Other Requirements for Getting a Loan at an In-house Car Financing Dealership?

Every dealership is different. At Auto Now, we simply require you to be at least 18 years old, have take-home pay of at least $1,200 after taxes, and have a valid driver’s license. Bring along recent pay stubs, your driver’s license, your phone bill, and at least one utility bill. You’ll also need to bring the money for the down payment, which can vary.

In-house car financing from a respected and trusted dealership makes sense for most people as you can get a great deal on an excellent model quickly and without fuss. Come down to 79th & Wornall to see all the great cars on offer at Auto Now.