Yes, the main disadvantage is that the interest rates are higher as compared to the other forms of borrowings. Generally, in-house financing car dealerships target buyers with a low credit rating which means that they have an extra risk factor for which they compensate by overcharging. Also, choice of vehicles may be restricted to somewhat older vehicles or vehicles with higher overall mileage. Buyers also need to be prepared for even more unfavorable terms that can appear in a loan including the period of repayment or weekly payments. However, it is crucial to adhere to the fact that the terms may sometimes be hidden hence the need to read them carefully to minimize the possibility of being shocked by additional charges.



Source: https://accountingbyte.com/in-house-financing-dealerships/

This plan is so complicated nobody will sell their house at a loss, similarly, we get borrowed with fixed interests and people are getting financially weak.

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