Car lots that offer in-house financing approvals have been increasing in popularity ever since the recession and credit crunch began to thwart car shoppers. Creditors are simply not extending credit like they used to; and to complicate matters, the national rates of bankruptcy, bad credit, foreclosure, and unemployment are at unhealthy levels.
But there are car lots which offer a way to gain a car easily without having to worry so much about your credit score. At many of these, your job is your credit — which means they look at whether you have adequate income to make your payments rather than focusing so much on your credit score.
When you get approved for your job is your credit car loans, you are essentially obtaining a car loan from the same location that you purchase your car. You might not realize that this is not typical of the industry at large. However, this is a high-risk business proposition for the dealers themselves, so expect high interest rates and frequent (often weekly) payment requirements.Unfortunately, many of these car lots prefer, if not require, that you offer a down payment of 10-20%, sometimes higher. Obviously getting together this kind of cash in the current economic climate is no easy task. But the good thing is that these establishments are typically more accepting of higher-mileage, older trade-in vehicles than their larger commercial counterparts. If you have a vehicle to trade in, the resulting trade equity you gain can usually be put toward a down payment as a substitute for cash.
