What Is In-House Finance?
In-House Finance is a phrase often used to describe Second Chance Finance.Typically financed by the car yard itself as opposed to a finance company outside of the business, these loans tend to be very high in interest.Cars purchased through in-house finance ( or rent to own style loans) also are quite often considerably higher than market value.
At 1 Stop Car and Finance we don't have in-house finance,.We do however have access to legitimate lender's who operate similar to In-House Finance in that the criteria involved is not based purely on your credit rating, but rather on the application itself.
There are some differences however. The main one being that because we use legitimate finance companies who deal in loans only rather than in used cars.For this reason our vehicles must are kept to the highest standard and priced fair to protect both the buyer and the finance company.We see this as a good thing, it helps us to stay competitive in the market and more importantly to deliver value to our customers.
Is In-House Finance for me?
Quite often people who are aware of a default on their credit file or who have recently been declined will call me asking if we provide in-house finance as they feel this is their only option to get approved. Many people are surprised when we tell them that perhaps their credit rating is not as bad as they consider and that there might be other options besides a private lender (similar to in-house, see above). Its something to be mindfull of, that many yards who deal in 2nd chance or in-house style used car loans may be concerned with getting the interest from the loan as well as selling the used car, and may not have your best interests at heart. Because we at 1 Stop, do not own the finance company, our focus is on getting you a used car and not just that but getting you what you want so you will refer your friends and family to us!!!
How is In-House Finance different from other Finance?
In-House Finance or private lender finance is pre-dominatly different to mainstream finance in 3 particular ways:
• Your credit rating is not the be all and end all... Our private lender is willing to often overlook not so good credit if firstly you can legally afford a loan and secondly it is considered you can stick to the loan term...
• Centrelink income: Unlike a lot of other finance companies somer private lender finance companies are willing to approve loans where the majority or maybe even all the buyers income is centrelink based but this will generally come at a price in the form of a very hefty rate. Fear not we can do it too, using legitimate well known lenders to get you approved and into a car.
• Age of the used car: Many mainstream finance companies will put restrictions on the age of the used car. This is ok if you have the ability to get a loan on a near new car, but can be rather difficult sometimes if you have a limited income or perhaps just don't want to borrow the earth!!!
• Your credit rating is not the be all and end all... Our private lender is willing to often overlook not so good credit if firstly you can legally afford a loan and secondly it is considered you can stick to the loan term...
• Centrelink income: Unlike a lot of other finance companies somer private lender finance companies are willing to approve loans where the majority or maybe even all the buyers income is centrelink based but this will generally come at a price in the form of a very hefty rate. Fear not we can do it too, using legitimate well known lenders to get you approved and into a car.
• Age of the used car: Many mainstream finance companies will put restrictions on the age of the used car. This is ok if you have the ability to get a loan on a near new car, but can be rather difficult sometimes if you have a limited income or perhaps just don't want to borrow the earth!!!
What are the drawbacks to In-House Finance?
There are some drawbacks to in-house style private lender loans. Most notable is your interest rate will be higher (the rate can and does vary and you won't know exactly what it is untill you are approved. The second drawback is the term of the loan will generally be shorter adding a bit more to your weekly payments. The flip side to the short term is that you will pay the loan off much quicker, reducing the overall amount of interest you pay quite a signifigantly. It can also potentially repair your credirt rating much quicker and is means you will have the flexibilty to change vehicles at a much sooner time should your needs change or should you just want a change in car