What Are Self-Financing Car Dealerships?

Essential Takeaways

• A self-financing car dealership is a dealership that offers in-house financing, which allows customers to avoid traditional bank loans. 
• Buy-here-pay-here dealerships focus on your down payment and current income, rather than your credit score.
• With Hawthorne Auto Square’s easy financing, you can rebuild your credit and drive off the lot with a new vehicle faster. 

What Is a Self-Financing Car Dealership?

Self-financing car dealerships offer in-house financing directly through the dealership, without needing to go through traditional bank loans or other lenders. If you’ve been wondering what “buy-here-pay-here” is, it’s simply another name for this process. 

How Does Self-Financing Work at a Dealership?

In-house financing car dealers can approve your loan without an outside lender. The dealer finances the vehicle and establishes down payment requirements, interest rates, and repayment terms. 

The process of obtaining such financing is generally as follows:

• Step one: Find an in-house financing dealership by searching online or inquiring with one in person.
• Step two: Find the right car for your needs on the lot. 
• Step three: Get pre-approved for a car loan by filling out the dealership’s application — the process is often electronic and requires no paperwork.
• Step four: Receive a prompt decision regarding your application and the loan terms, often within minutes.

Car buyers near LA often have an easier time being approved after they’ve been turned down by traditional lenders. Los Angeles residents may want to consider a self-financing car dealership for quick and easy financing. 

Benefits of Self-Financing Car Dealerships for Buyers

The biggest benefit of using buy-here-pay-here dealerships is how easy it makes it for you to get approval. It can be difficult, or even impossible, to be approved for an auto loan if you have bad credit, no credit history, or a bankruptcy or repossession on your credit record. 

A self-financing car dealership in South LA may not have to do a credit check, but even if it does, applicants can qualify for financing regardless of their credit status or how they earn income. Other benefits for buying from a self-financing car dealership include:

• Better options: The dealership’s offer can help you find a car you can afford and negotiate its price. 
• Rebuild your credit: With your new loan, you may be able to rebuild your credit (if the dealership reports to the credit bureaus). 
• Get the car you want, now: You can sign off on the loan, purchase a used car, and drive away from the dealership on the same day.

What Are the Downsides of Buying from a Buy Here, Pay Here Dealership?

There aren’t as many requirements and red tape associated with a car loan without bank involvement. However, there are some possible downsides to choosing a buy-here-pay-here dealership, like: 

• Higher interest rates: Interest rates can be high, as the lenders are taking more risk financing buyers who have low credit, so it’s important to shop around. 
• Limited options: Your vehicle options are limited to only the cars in that dealership’s inventory. 
• Unscrupulous dealership practices: How they set their prices and decide how much to lend can lead to you owing more than the car is worth. 
• Inconveniences: Some dealers even require you to pay in person on a weekly or bi-weekly basis. You’ll need to travel to the dealership even if you don’t live nearby. 
• Limited payment flexibility: Terms are set based on your income and pay schedule, so there may be little flexibility in terms of payment options.

At Hawthorne Auto Square, we aim to provide all customers with clear and simple loan terms, excellent trade-in values to put toward your down payment, and fair payment plans that work for your unique situation. 

Even if you have no credit, we can help you get the car you want with a flexible payment plan that fits your budget and your lifestyle. You can choose to pay us online or by phone. Plus, we offer a comprehensive 6-month warranty covering service and maintenance on our low-mileage, thoroughly evaluated used cars.

Does Self-Financing Help Rebuild My Credit?

Yes! Even if you have no credit, car loans through Hawthorne Auto Square can mean a chance to get on the road and improve your credit score. The process starts as soon as you’re approved for a loan. As long as you continue to make your payments on time, your credit score will rise. You may even be able to skip a payment if you run into financial trouble. Speak to one of our salespeople to learn more about growing your credit with our in-house payment plans. 

Financing Options Explained (In-House vs. Bank Loans)

While dealerships that offer bad credit auto financing may still check your credit for risk-assessment purposes, the focus is on the down payment and income. This makes it easier for people with poor credit to obtain a car loan and find the perfect used car in their price range. 

Bank loans, on the other hand, focus on your credit rating first. Traditional auto financing may offer lower interest rates and a wider vehicle choice, but the requirements are much stricter, and the process can take several days or weeks, with more paperwork.

Why Hawthorne Auto Square Is a Trusted Self-Financing Dealership

Our customers trust us because we make the car-buying process easy. We’ll give you all the information you need to make an informed, pressure-free decision, so you leave our lot feeling good about your purchase. 

• We have an easy pre-approval application, which will allow you to plan your next move, pressure-free. 
• Unlike other self-financed car lots, our sales team is happy to provide helpful tips on safely buying a used car with bad credit. 
• You can check your trade-in vehicle’s worth using our online estimator, giving you a good idea of what you’re working with before you arrive on the lot. 

Service Area – Self-Financing Car Dealerships in Los Angeles County

Serving drivers in and around:

• 90250 – Hawthorne, CA
• 90044 – South LA
• 90504 – Torrance, CA
• 90260 – Lennox, CA

Final Thoughts – Is a Self-Financing Dealership Right for You?

To learn more, visit our buy here, pay here used car dealership in person or continue browsing for information on our in-house financing programs. Call 855-603-3794 to speak with us directly. Whether you’re paying in cash or need no-credit financing, our team’s available seven days a week to help you get into your next vehicle. 

Frequently Asked Questions

What documents are required for self-financed car approval?

In California, buyers will need to provide proof of identity, proof of income, and proof of residence. You’ll also need proof of insurance before you can drive off the lot.

How big a down payment do I need for in-house financing?

We may be able to offer you financing without any down payment at all! Contact Hawthorne Auto Square in Southern California to find out more about your options. 

Can I trade in my old car at a buy-here-pay-here dealership?

Yes! We accept trade-ins. Bring your old car to us, and you can use the market value as a down payment on your new vehicle. Be sure to check your vehicle’s approximate value within 48 hours.