Auto dealers offering “in-house” financing are growing increasingly popular in NC.  The same is ture with many other states as well.  Why?  Because a dealer with in-house financing can often extend consumers credit to finance a vehicle even if they suffer from a sketchy credit history.

Although some dealers offer zero down auto loans, most will require that you place a down payment in the neighborhood of 10-20% on your new vehicle.  Together, you and the dealer or his representative will determine a monthly payment that is appropriate for your current income and debt structure.  At a in-house financing lot you are making payments to the people that you purchased the car from to begin with. This is a wonderful thing because with a traditional dealer you are making payments to a financing company. If you miss your payments, your credit score may not be affected, though your vehicle will almost certainly be promptly repossessed.  Check with you dealer to find out whether they report debt repayment to the credit bureaus.  If they don’t, then your credit shouldn’t be damaged in any way; on the other hand, you’ll miss out on boosting your score should you exhibit admirable debt repayment behavior.  A recent article on MSN said that bad credit costs people nearly $200,000 over the course of their lifetime, so boosting your credit score can be a very valuable thing.You will fill out an application and place a down payment on the vehicle and most likely drive the car off of the lot. In-house financing lots serve the credit-challenged, while those with good credit typically get better deals at a more traditional dealership. Increasingly, large dealerships are offering in-house financing as just one of the many options to help them sell cars.