If you are looking forward to purchasing a new car or an automobile for the first time, it will involve a huge investment. In such cases, it is suggested to consider a car or an auto loan to avoid spending a large amount of money on cash payments. Further, you get security to cover the amount that you pay to purchase an automobile in instalments. The loan lenders nowadays consider your credit history before lending you the required amount. You can check for second chance auto loans in case your credit history is bad. The in house auto financing singapore is a type of second chance auto loan. You will come to know more about in house financing further below.
What Is In House Auto Financing?
In in-house financing, the loan is offered directly by car dealerships rather than involving financial institutions like banks in offering auto loans. If you face issues in getting loans from lenders due to your poor credit history, then in house auto financing can be beneficial. The dealer involved in this financing is the dealer of second chance auto loans too. Therefore, no third party lenders are involved.
You can rest assured that you can easily avail of loans through in house financing despite the status of your credit history. The basic information that is considered is your salary income and your down payment details.
When To Go For An In House Auto Financing?
In a few of the situations, the normal lender refuses to offer auto loans. In such cases, in house auto financing is considered. Those situations are
· Early requirement of owning a car- The time taken to take a loan from banks is more than from in house financing. Thus, if you are in urgent need to buy a car, then in house financing is one of the best options to consider.
· Cases of bankruptcy- If you have a history of bankruptcy, then financial institutions like banks won’t be able to offer loans due to bad credit history. Even if your present financial condition is stable, then also chances of getting a car loan will be less from usual lenders. In such situations, in house financing is beneficial.
· In case of vehicle repossession – In the case of a past auto car loan default, many people opt for vehicle repossession. In such a case, going for in house financing is recommended.
Conclusion
Thus, if you face issues in getting auto loans through normal means of lending, then in house financing can be considered.