Things to know about “Buy here, Pay here” (in-house financing) dealerships

May 25th, 2017 by

A few of you might have heard about “Buy here, Pay here” dealerships, and some of what you heard might have been a little negative. Here at Smart Motors we want to take a couple minutes to inform you what “Buy Here Pay Here” means, and what sets us apart from other dealerships in town.

“Buy Here, Pay Here” is better known as In-House lending. In-House lending means that the dealership has their own private bank that they work with. Larger dealerships that don’t offer in house financing work with banks and credit unions to finance your vehicle loan. The benefit to going to an In-House lending dealership (especially if you don’t have great credit, have past repos, etc) is that they will not spam out your application to 15+ places trying to get your loan approved. You deal with one company, one inquiry on your credit, and you get the benefit of a more personal experience. Other benefits include..

Short term loans
A lot of the time, a dealership that has In-house financing, has shorter loan terms. If you are purchasing a vehicle and are offered a short term loan, take advantage of it! A short term loan typically has a little higher interest rate than longer loans, and the monthly or bi-weekly payments can be a littler higher as well, but the amount of money you will save you in interest definitely makes up for it. You will also own your vehicle a lot faster (typically 3-4 years vs. 6-10 years) which allows you to build your credit faster, and build equity in your vehicle faster as well.

One stop shop
Another great benefit of an In-house lending dealership is that most of them, like Smart Motors, are a one stop shop! You will find the dealership, the in-house lending account managers, and the service center all in one location! You will be able to go and see your salesman, or account manager when you have questions or issues instead of having to call some bank or credit union representative that you’ve never met.

There are so many benefits that come along with purchasing from an In-House Lending dealership. Come see us at Smart Motors if you have any questions about what makes In-House financing the right choice for you. When you purchase from us, we have a relationship for the next 3 years, and we do better than our best to make it the best car buying experience you’ve ever had!

5200 E Speedway Blvd Tucson, AZ 85712

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