The cons of using in-house financing from car dealers
Although getting in-house financing from your car dealer might seem easy and quick, it does come with its own set of disadvantages. Some of the cons of using in-house financing from your car dealers are: All bundled into one transaction At a glance, having the entire car-buying process all bundled up into one transaction might make purchasing seem easy. However, you need to keep in mind that it is a horrible way to buy a car, especially if you are looking to get a good deal. The price, down payment, trade in, and auto loan terms are all put into one transaction. This is a common dealer trick to make you focus solely on the monthly payment of the car, while other expenses such as trade-in value, vehicle price, and car loan terms are ignored. This makes you believe that it is a good deal, but, in fact, has many loopholes. It can also be confusing when everything gets bundled up into one package. This is, however, beneficial to the dealer as he/she are aware of the consequences. They usually target inexperienced customers by jumbling the numbers. Car dealers charge a markup This is yet another business model. Since they want to make money, the car dealer ends up making a tidy profit on the sale by marking up the cost of the car loans that they offer.