Preparing For An In-House Auto Loan
If you’re reading this and are on the way to get your first in-house auto loan, congratulations! In-house loans have many benefits, and we’re sure you’re already aware of some of them. They’re great for those with past credit issues, those who need a car quickly, and those who want to streamline their auto purchase process. But the traditional lending process – where you approach a creditor for help with financing, can be hard to understand despite their popularity and relatively good advertisements. In-house auto loans are not as well advertised, and therefore, the process might seem obtuse or out of reach.
If you’re applying for in-house financing, Auto Now wants to assure you that the process is not as hard as traditional lending. We’re here to walk you through it so that you feel confident taking the first steps toward owning your car with the help of a buy here pay here dealership.
Filling Out the Application
Application processes are easy at buy here pay here car lots, and usually can be done from your own home. In fact, many dealers suggest working from home on these applications, that way if you find you need a little more time to get information, you don’t end up having to make a trip back to the dealership to retrieve that information.
The application process begins by laying out the guidelines for lending. From there, the application will ask you financial questions, including questions about your monthly expenses. Depending on the dealership, they may also ask you for personal references to verify that the financial information you provided is correct. Once the application is completed, all you have to do is wait to hear back from the buy here pay here company.
The reason so many people have issues getting approved for traditional loans is because regular loan approval is contingent on credit health. For those with previous credit issues, applying for loans through banks and other lenders can be exhausting, filled with days spent at the bank only to be denied funding. On top of that, each time you apply for a loan through one of these sorts of lenders, you must get your credit checked. A credit check does impact your credit score, so if you have credit issues applying for credit in one of these ways can further hurt your credit score.
Approval for an in-house auto loan at a buy here pay here dealership is rarely contingent on credit history. At Auto Now of 79th and Wornall, you will never be turned away because of your credit history. The only checkmarks you must meet to be approved for funding are that you are eighteen years of age, have a valid driver’s license, and make more than $1200 each month (after taxes). If you meet these, you will be approved for funding.
Meeting With a Representative
After approval, you will meet with a representative at the buy here pay here lot to go over your in-house auto loan amount. The amount you are approved for will determine which cars on the lot you can purchase, so this meeting is extremely informative and necessary. A representative will then show you the vehicles on the lot that fit with your needs as well as the loan amount they are willing to provide to you.
It is not necessary that you drive away with a car the same day you are approved for funding. The approval will stay, and you can keep an eye on the ever-changing inventory until you find a car that you like. However, if you see a car you want the same day you are approved for financing, it is possible to drive away with a new car that same day.
Signing the Papers
Signing ownership papers is reminiscent of any other car financing experience. The papers you sign will show that you are paying off the loan toward full ownership of the car. However, the title will still belong to the buy here pay here company until the loan amount is paid in full. Other than that, you are free to take the paperwork to your local DMV and register the car in your name! It’s yours.
Paying off the Loan
Loan terms at buy here pay here lots are almost always shorter than loans at new car dealerships. As well as being cheaper than new cars, monthly payments are designed so that you pay off the highest comfortable amount over the lowest period. Associates will always refer to your monthly financial obligations and income to find a payment amount that is right for you. In the end, you’ll end up paying far less than you would with a traditional loan because interest will be much less.
Owning the Car
After the car is paid off in full (usually no more than a couple of years), it is entirely yours to sell, trade-in, or scrap as you please! The title will be signed over to you once payment is complete. Reputable dealerships like Auto Now of 79th and Wornall offer warranties on their used cars, which means that the vehicles you purchase should last and be reliable far beyond when you pay off their loans. Additionally, you can often get competitive trade-in prices for your vehicle if you bring it back to where you purchased it. The possibilities are endless with buy here pay here cars.
At Auto Now on 79th and Wornall in Kansas City, we’re confident that you’ll be able to make savvy car purchase decisions after working with our talented employees. Click here to start filling out an application for an in-house auto loan from the comfort of your own home. Once you are approved, someone from our 79th and Wornall location will get in touch with you. Alternately, call our store at (816) 333-6000 to schedule an appointment and get started on your next car purchase. We look forward to helping more residents in the Kansas City metro area obtain the transportation options they need.