A self-financing car dealership can be your best option when it’s difficult to obtain a loan. These businesses are advertised all over Southern California. But can they really help you afford a car, and is this the best way to purchase your next vehicle?

How Does Self-Financing Work?

Otherwise known as an in-house or buy here, pay here used car dealership, a self-financing dealer can approve you for a loan without an outside lender. The dealer finances the vehicle itself and establishes down payment requirements, interest rates, and repayment terms. Car buyers often have an easier time being approved after they’ve been turned down by traditional lenders.

The process of obtaining such financing is generally as follows:

  • You find an in-house financing dealership (their sign may say “buy here, pay here”, “no credit check necessary”, etc.
  • Search for self-financing dealerships online or inquire with one in person.
  • Get pre-approved for a car loan by filling out the dealership’s application; the process is often electronic and requires no paperwork.
  • Receive a prompt decision regarding your application and details on the terms of your loan, often within minutes.

Benefits of a Buy Here, Pay Here Used Car Dealership

It can be difficult, or even impossible, to get approved for an auto loan if you have bad credit, no credit history, or there’s a bankruptcy or repossession on your credit record. A self-financing car dealership may not run a credit check. But even if it does, applicants can qualify for financing regardless of their credit status or how they earn income. 

The dealership’s offer can help you find a car you can afford and negotiate its price. You can even use the opportunity to rebuild your credit (if the dealership reports to the credit bureaus). Oftentimes, you can sign off on the loan, purchase a used car, and drive away from the dealership on the same day.

Disadvantages of a Buy Here, Pay Here Used Car Dealership

There aren’t as many requirements and red tape associated with dealership financing. However, interest rates can be high, so it’s important to shop around. And your options are limited to only the cars in that dealership’s inventory. How they set their prices and decide how much to lend can lead to you owing more than the car is worth. Plus, you’ll be driving away in an older, higher-mileage vehicle that may soon need repairs.

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. This is less convenient than mailing a check monthly. Also, terms are set based on your income and pay schedule, so there may be little flexibility in terms of payment options.

Apply for Convenient Financing with Hawthorne Auto Square

If you’ve been shopping around for self-financing car dealerships, you’ve come to the right place. At Hawthorne Auto Square, we offer fast pre-approval for car buyers with bad credit or no credit. Accepting a loan offer can mean a chance to get on the road and improve your credit score. Receive a fast decision and benefit from APRs as low as 2.9%; or, take up to five months to build a down payment.

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. 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 866-707-7664 to speak with us directly.