Whether you live out on the edge of far Northeast Philly, or live near South Philly and Center City, purchasing a car can be the same. Time consuming. This is especially true if you're trying to track down a car dealer that will work with your difficult credit situation.
Sure, you can try visiting every dealership along I-76, but without a car of your own, that could take forever. If you're finding that you're not getting approval because of your credit situation, consider an in-house financing option.
You may not be aware of the fact, but you actually have a number of different financing options available when you are looking for a used car in Philadelphia and need to take out a loan. In-house financing is one of those possibilities. Essentially, in-house financing means that you are getting the loan right from the car dealership itself. With traditional auto financing, a third party lender will provide your loan, but that is not how it works with in-house financing. For several reasons, this can be the easier and more practical way to go, especially for people who are in difficult financial situations.
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Let's say that you were working with a third party lender. If you wanted to negotiate the price of the car, the entire process could become rather convoluted. Instead of simply negotiating the price and moving on, you'd first have to see if the third party lender was going to approve the loan. This would be both exhausting and annoying, especially if you needed the car quickly. If you opt for in-house financing, then you can just go directly through the dealer and discuss everything with the staff there.
Remembering to make payments on your car loan or lease might be a problem for you, and this is certainly not going to help your credit situation or your finances in general. Let's say that you have a loan from a third party lender and a service plan from the dealership itself. Each month, you are going to have to remember to make two separate payments, and this will be especially tricky if automatic payments are not offered to you. When everything is just going to the dealership, you don't have to worry so much about getting confused or forgetting to pay altogether. You'll only have to be concerned about making one payment.
Part of the buying process involves understanding how your payments are going to be broken up. There's a good chance that you are going to make some sort of down payment on the vehicle. Then, the rest of the car price will be split up by the number of months in the agreement. The number of months can vary, and you should work out these points with the car dealership. Then, you are also going to have an interest rate added into the amount that is financed. Interest rates are traditionally defined by your credit score, but BHPH/in-house financing lots, since they don't check your credit score, will typically just charge a flat rate.
A major benefit of choosing a dealership that is located near your home in Philadelphia is that you can go back to refinance later on. Refinancing can help you to lower your interest rate. If you raise your credit score or if interest rates drop in general, it might be a good idea to re-visit that car lot in west Philadelphia that you got your car from and see if you can work out better terms. You may also consider refinancing so that you can lower your monthly payments by adding more months to the loan agreement.
Right now, you might be wondering how you are ever going to get approved for an auto loan with very poor credit. After all, your finances are really not in the greatest shape. Fortunately, working with Auto Credit Express to obtain pre-approval is an excellent idea. When you get pre-approval, you'll know that you are able to purchase a car for a certain amount of money. Then, you can start to look at cars that fall within your price range.
At Auto Credit Express we will provide you the safest and easiest way to get financing when you have lower credit scores. Fill out the loan request form and we can help you find the closest in-house financing dealers that will get you on the road today.