So you're in Houston or somewhere in Texas, and a used car dealership says they offer In House Financing or Buy Here Pay Here, and you're not too sure what that means? We got you!
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In its easiest explanation, In House Financing (some spell it as InHouse Finance) or Buy Here Pay Here means you are going to be financed within the dealership. It's a direct relationship between the car shopper and the dealership. There is no third party bank involved. You are borrowing from the dealership and paying the dealership. It's in the house! Hence, the term In House Financing :)
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That's the easiest explanation. Now let's dig deeper if you have 3 to 5 more minutes to spare...

For a long time there were only two ways you can purchase a used or new vehicle: you either buy it cash or get financed through the bank. Car shoppers could either get approved through their own bank or Credit Union, or visit the car lot, which is usually connected to nearly 30 banks on standby - eager to earn your business.
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In House Financing became part of the business in the early 90s but really took off in the 2000s. Here's what happened...
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Car dealers simply got tired of dealing with third-party banks rejecting their customers. A customer would come into the dealership, test drive a couple of cars, choose one, and proceed with the financing part of the deal.
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Because, see, there are different types of banks. Some banks only deal with shoppers with A-1 credit (700 +). Other banks specialize in shoppers with bad or poor credit. So the Salesman has to first run your credit and then choose 3 or 4 appropriate banks to send your application to.
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Some banks might choose to do their own credit check because they use a different credit bureau than the one the Salesman had used for your application. This is the case whenever you see 5 or 7 hard credit pulls after you visit a dealership.
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So anyways...

The banks send the information back, and it's going to be one of the following:​
-Approved ✅
-Denied ❌
-Denied (but will re-consider with a cosigner) 🔄
-Approved with 30% - 50% Down Payment 💰

Because these banks were making approvals using a computer algorithm that pulled data from your credit and application, dealers started to see a lot of car shoppers being denied for approval when the Salesman strongly believed that the shopper deserved a chance. For numerous reasons:
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-The shopper co-signed for an ex-girlfriend. They broke up and things went downhill after that. Not really his fault.
-The shopper went through a divorce. They couldn't agree on the assets so the judge ruled that they forgo all assets. Not really the shopper's fault.
-The shopper was financing a car from another dealership a couple of years back, but the transmission broke two months after she got it, and she's still being asked to make monthly payments by the bank, because, well, the bank doesn't really care. So she did a voluntary repo / repossession.
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There are sooooooo many scenarios in which the bank weren’t approving the shopper but should have, and dealers simply got tired of it. And that was the birth of In House Finance. They said "Screw it, we'll take a chance on this guy" if the bank doesn't.
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In House Financing really takes the approval at the human level. You even go through an interview to make the approval final - provided you meet all the basic requirements which are the following:
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Best of luck to you!
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John Kamal
Sales & Finance Manager
Call: 832-680-5892
Text: 832-680-5892
Instagram: @johnkamalcars
Facebook: @johnkamalcars
Twitter: @johnkamalcars
Website: www.jkamalcars.com
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We offer In House Financing (also known as Buy Here Pay Here) ensuring everybody has a chance at being approved for a car loan regardless of what their credit looks like. We approve applicants with bad credit or first-time car buyers with no credit at all. We also approve you if you have been in a bankruptcy. Repo / repossession is also fine. As long as you have a full-time job along with proof of income we will get the job done. Start driving today for as low as $1,000 Down!
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