As you probably know, buying a car with a low credit score can be a major challenge, as all major lenders decide whether to approve you based on your FICO score. Buy here pay here car lots, on the other hand, don’t. Normally they are more concerned with your income and history of employment when it comes to approval. Since the loan is offered directly from the dealership, you’ll be making your payments directly to the dealer, often in-person, not to a separate lender. However, these dealers can be difficult to find. Often, the only way to identify them is through signs that say such things as:
- We Finance
- Tote The Note
- Your Job is Your Credit
- Rent to Own
- In-House Financing
Unlike a bank or credit union, these dealerships rarely have credit minimums. That being said, you will need a minimum income of $1500 per month or $375 a week. Importantly, this is your income prior to taxes are taken out. If you don’t make $1500 monthly, you can probably still apply with a cosigner, provided they have great credit.
How Much Will I Need to Put Down?
Because buy here pay here dealers finance people with an array of credit problems, they do ordinarily require a down payment of some type. Obviously, buyers with low credit scores default at a higher rate. A down payment minimizes dealer losses if the vehicle has to be repossessed. Often, the down payment covers what the dealer spent for the vehicle, meaning you might want to go with the least down payment the dealer will accept.
Planning Your Investment
Numerous buy here pay here dealers in Indiana wind up repossessing 25% of the vehicles they finance. The dealer will be filled with vehicles that aren’t affordable enough. You need to go for a modest vehicle with inexpensive payments. Always make your payments on time, and review your contract to determine what constitutes a default. In order to get approved, you may have to agree to the installation of an ignition kill-switch.
Should You Opt for this Type of Financing?
Not if you can help. BHPH dealers rarely report to the credit bureaus, meaning you won’t be able to rebuild your credit with this loan, and there are all kinds of disadvantages.
Don’t waste your time trying to find a buy here pay here dealership near to where you live. This is where we come in. We have relationships with dealerships who want to fund your loan, even with credit problems like bankruptcy, repossession, and foreclosure, and they’re willing to approve your credit – online! In contrast to BHPH lots, they offer:
- Competitive Rates
- Reasonable Down Payments
- Credit Bureau Reporting
- Both New and Used Vehicles
The whole process is fast, safe, and cost-free. Don’t delay. You could be driving your new car or truck today!