These automotive dealerships offer direct financing to customers, bypassing traditional lenders. Such establishments typically cater to individuals with credit challenges who may find it difficult to secure financing from banks or credit unions. The financing arrangement is handled internally, with the dealership acting as both the seller and the lender. This model often involves different interest rates and repayment terms compared to conventional auto loans.
The importance of this model lies in providing vehicle access to a segment of the population that might otherwise be unable to obtain transportation. This can be crucial for employment, family needs, and overall quality of life. Historically, these dealerships emerged to fill a gap in the automotive financing market, serving as an alternative to traditional lending institutions that often have stricter credit requirements. The benefits include the potential for individuals to rebuild their credit through consistent on-time payments.
