Car Finance 101: What should I look for in car finance?

Auto Dealership - Legacy Auto Credit

Purchasing a new car is an exciting endeavor, but it often comes with a hefty price tag. For many people, financing is the key to making their dream car a reality. While traditional bank loans and third-party financing are common options, in-house car financing offered by auto dealerships has gained popularity due to its convenience and accessibility. If you’re considering in-house car financing and you’re wondering, “ What should I look for in car finance?” read this blog post to make an informed decision.


The 10 things you need to consider when applying for car financing


  1. Interest Rates and Terms

 Interest rates can significantly affect the total cost of your car over time. When exploring in-house financing options, compare the interest rates offered by different dealerships. Additionally, pay attention to the loan terms, including the length of the loan. A longer loan term may lead to lower monthly payments, but it could also result in paying more in interest over the life of the loan.


  1. Credit Requirements 

In-house financing can be a viable option for individuals with varying credit scores. Some dealerships specialize in providing financing to people with lower credit scores, while others may require a higher credit score for approval. Understanding the credit requirements will help you choose a dealership that aligns with your credit profile.


  1. Down Payment

 Consider the amount of down payment required by the dealership. A larger down payment can reduce your monthly payments and the total interest paid. Some dealerships might have flexible down payment options, making it more accessible for individuals with limited upfront funds.

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  1. Vehicle Selection

Take a look at the range of vehicles available for financing at the dealership. Make sure they offer a variety of models that suit your preferences and needs. It’s essential to choose a car that fits within your budget and aligns with your lifestyle.


  1. Reputation and Reviews

Research the reputation of the dealership offering in-house financing. Look for online reviews and testimonials from previous customers to gauge their experiences. A reputable dealership will be transparent, responsive, and committed to providing excellent customer service.


  1. Hidden Fees and Terms

 Carefully review the loan agreement and inquire about any potential hidden fees. Sometimes, in-house financing agreements may come with additional charges, so it’s crucial to understand the complete financial picture before committing.


  1. Flexibility and Penalties

Life is unpredictable, and circumstances may change. Check whether the dealership offers any flexibility in terms of payment arrangements if you encounter financial difficulties. Additionally, understand the penalties for missed payments or early repayment.


  1. Keeping the term short as possible

Stretching out an auto loan for five or even six years may seem like a good idea, but you’ll end up paying a lot more in interest and almost certainly have negative equity in your car for most of that time.


  1. Buying a car you can truly afford

Buying a car is not an investment; it’s a depreciating asset as it will lose about half its value in four years; that’s why you want to pay off your car as soon as possible, and you don’t want to pay for something that will not help your credit score.

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  1. Comparison Shopping

Don’t settle for the first in-house financing offer you come across. Take the time to visit multiple dealerships, inquire about their financing terms, and compare the offers to find the one that best suits your financial situation.



In-house car financing from auto dealerships can be the ideal solution for getting behind the wheel of a car, especially if you have unique credit circumstances. However, just like any financial decision, it requires careful consideration and research. By focusing on the key factors mentioned above, you can make an informed choice that aligns with your budget and preferences, ultimately driving away with both a new car and financial peace of mind.

At Legacy Auto, we have completely transformed the dealership experience. Browse today through a wide array of certified vehicles online, and set up the financing. If you have any questions about our app or our in-house finance options, please don’t hesitate to get in touch with us. You can reach us at (519) 507-2277 or send an email to [email protected]. Our dedicated team is here to assist you and provide the information you need. Feel free to reach out to us, and we’ll be happy to help!

In need of a new vehicle?

If you need a new vehicle and are looking for an affordable payment plan, our credit experts are ready to help you, even if you have bad credit. You can fill out an online Car Loan Application and our credit experts will help you find a payment plan that meets your budget and lifestyle. You can also reach out for a complimentary credit check.