Over time there have been significant improvements to the in house car dealer financing world of automotive finance. Improvements by way of making sure the dealers are not over pricing they're vehicles and that all of the vehicles come with warranties that will protect the consumer from any misrepresentations like over pricing or selling an unwarranted vehicle that initially has problems. Since this change was implemented in California it has been most beneficial for the consumer. The consumer base confidence has risen dramatically and more people have been taking advantage of a good alternative to bad credit financing called "in house financing."
Some dealers that finance in the past may have taken advantage of unsuspecting customers that had purchased the vehicle under false pretenses. It is very tricky to purchase a vehicle and fully inspecting it's capability for defective mechanical equipment. Small mechanical parts in the motor could become worn or just failed entirely and render the vehicle immobile and possibly costing thousands of dollars to repair and get back on the road. In the past in house car financing used to be the least favorite alternative when applying for at home auto finance. In today’s day and age less than perfect credit seems to be ever increasing for those who may have encountered a financial set back along the way.
Consumer In House Confidence Elevated
Implementation of AB 1534 was put in place to help protect the consumer from being taken advantage of. All of the in house finance dealerships in this state were expected to adhere to these policies moving forward. It was also written that autos that were scheduled for salvage be marked appropriately with a red tag so that the consumer was aware that a vehicle had a bad title and was scheduled for salvage. Often it was not uncommon for a salvaged vehicle to go unnoticed and re-circulated into the public buy selling it to an unsuspecting individual.
The new laws put into place in California have help to improve the in house financing and buy here pay here dealerships. From a consumers stand point it is definitely an improvement that helps to elevate the level of confidence between the dealership and consumer when applying for in house auto financing.