Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

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. 1102-hyundai-mileage_full_380

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