What Are 'Your Job is Your Credit' Auto Dealers?

Get Car Financing
Even with poor credit.

By

Contributing Writer

David Topham covers the automotive and auto finance industries as the Content Manager of Auto Credit Express who also contributes to CarsDirect. He was born and raised in Michigan and is a graduate of Michigan State University.


, Contributing Writer - January 18, 2017

In-house financing car dealerships go by many names. You may have heard of them referred to as buy-here, pay-here dealers or tote-the-note car lots, or seen advertisements promising to "finance anyone" because "your job is your credit." Regardless of what name they go by, these dealers operate in a similar manner, arranging and offering auto loans without third-party lenders. Instead of using your credit to approve you, these dealers are more interested in your income, hence the "your job is your credit" advertising.

Basically, all you need to get approved is a steady job that earns you a qualifying income, a down payment, and a stable residence history.

The Advantages of "Your Job is Your Credit" Auto Dealers

These car loans offer some real benefits.

  • There's no credit check, so dealers may approve people of all credit types. While third-party lenders, like banks and credit unions, hold stricter standards, in-house financing dealers believe "your job is your credit." If you are struggling with bad credit and can't get approved for either a traditional or subprime loan, this may be the best option to get back on the road.
  • The car buying process is reversed. At a traditional dealership, you normally pick out the car you want and then decide on the financing. At an in-house financing dealership, the opposite is true. First, you meet with the finance manager to determine the loan terms. Then you select a vehicle from the lot that fits those terms. This helps you follow a realistic car-buying budget so you finance a vehicle you know you can afford, which gives you the best chance of successfully completing the loan.

The Disadvantages

While approval might be easy, in-house financing car loans do come with some drawbacks.

  • You could face high interest rates.
  • Vehicle selection may be limited to older cars.
  • Many of these dealerships do not report your loan or payments to the credit bureaus, meaning it won't improve your credit score. Be sure to ask whether a dealer communicates with credit bureaus.
  • Many of these dealers require you to make your payments in person at the dealership. Also, some loans require bi-weekly or even weekly payments, which could be a real inconvenience.
  • These dealers can be serious about repossession, with some going as far as installing GPS trackers and automatic shut off devices on their vehicles.

But, again, the real appeal of these types of loans is that the lender isn't checking your credit. If your credit is suffering and you need a car, a "your job is your credit" auto dealer may be the answer.

However, you shouldn't assume it's the only way you can get approved for a car loan. At CarsDirect, we have a national network of dealers that offer financing through subprime lenders. We've helped thousands get approved for new and used car loans, and you can be next if you simply complete our free and easy online application today.

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, Contributing Writer

David Topham covers the automotive and auto finance industries as the Content Manager of Auto Credit Express who also contributes to CarsDirect. He was born and raised in Michigan and is a graduate of Michigan State University.


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