What is in-house financing or 'Buy Here Pay Here' Dealerships?

In house financing, also known as Buy Here Pay Here Dealerships, means that the auto dealership is going to personally lend the money for you to purchase the vehicle. This opens up approval opportunities for more Canadians who would otherwise have been turned down. Many Canadians have misconceptions on who they borrow money from when they purchase a vehicle at a dealership. We will walk you through the two most common types of auto finance situations.

Non In House Financing

In this scenario the vehicle is purchased from the dealership. The money for this purchase comes from a 3rd party lender. These lenders can include a variety of prime lenders including, but not limited to:

  • TD Bank
  • RBC
  • Scotia Bank
  • Various Credit Unions
  • BMO
  • Ford Credit
  • Ally

Traditional lenders like these only care about the loans, and not about getting you a car, so they will have more strict requirements for approval than a dealership. Buy Here Pay Here dealers want your business, so they're often more open to working with people who have less-than-perfect credit.

There are also non-prime or subprime auto finance lenders:

  • CarFinco
  • Scotia Dealer Advantage
  • TD Non-Prime
  • Rifco

When you purchase the vehicle the money is given to the dealership for the vehicle from one of the above (or other) lenders. You then make payments back to the lender for the purchase amount plus any agreed on fees and interest.

Buy Here Pay Here Dealerships

Sometimes an applicant will not qualify for any of the available lender’s programs. For a lot of Canadians this the end of the line for options. That is of course unless the dealership has in house financing. When a dealership has in house financing, also known as "Buy Here, Pay Here" they are going to lend you their own money. You will then be making payments back to the dealership each month as opposed to a 3rd party lender.

Pros of In House Auto Finance and Buy Here Pay Here

  • Often able to obtain financing when other means have failed
  • Convenience of making payments back to the dealership you purchase the vehicle from
  • Cons of In House Auto Finance
  • Vehicle choice may be limited
  • Down payment may be required (not always)
  • Dealership may not report payments to credit bureau (always check this as positive repayment history will help build your credit

Canada Drives Can Help you Find the Best In House Buy Here Pay Here Dealerships for FREE

Canada Drives works with thousands of Canadians every day, ensuring they get quality vehicles with ease and simplicity, regardless of their credit score. Getting approved for auto financing with bad credit can take several days, and even weeks, but Canada Drives’ dealer partners work hard to get applicants the best vehicle and financing options fast. If you need an affordable vehicle and want to rebuild your credit, apply with Canada Drives for free today and learn more!

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