Since many banks will not give auto loans to people with bad credit or no credit, due to increased restrictions or risk, on-the-lot financing has become more popular. Unfortunately, since Buy-Here-Pay-Here financing is not strictly regulated, interest rates can be quite high.
1. What are the benefits of on-the-lot financing?
2. What are the costs of on-the-lot financing?
3. What are some of the reasons for further government regulation of on-the-lot financing?
Hendricks, D. (2013). A Look at the Dangers of On-The-Lot Financing. Huffington Post, March 15 (Retrievable online at http://www.huffingtonpost.com/drew-hendricks/a-look-at-the-dangers-of-on-the-lot-financing_b_2870508.html)