Buy Here Pay Here Car Lots

Written By : Josh Jones on December 5, 2019

Buy Here Her car lots near me-all you need to know

Are you going through a tough time trying to get a car loan due to a low credit score?

If do, then you are not alone. There are thousands of consumers who are faced with the same situation, but it also doesn’t mean that you are out of options.  In fact, a simple thing as searching for ‘Buy Here Pay Here near me’ is enough to get a wide range of BHPH dealerships that are willing to finance car shoppers with bad credit scores.  With the help of BHPH merchant, you can easily get the car financing you need to purchase your dream car. Contact us today to get started!

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BHPH car lots loan requirements

To qualify for BHPH financing, you should

  •         Earn a minimum monthly income of $2,000

BHPH dealerships assistant consumers who are in a position to pay the average monthly finance cost.  This amount is usually $523 for vehicles. By law, the maximum amount that you should pay a wholesaler should not exceed 25% of your monthly income.

  •         A down payment of up to 40% depending on the BHPH wholesaler
  •         A cosigner( not always a requirement)
  •         Proof of identity
  •         You must have resided in the city for a period of at least 3 months

What if you can’t afford Buy Here Pay Here Car Lots financing?

Rollover

If you fail to make payments on time, it doesn’t really mean that you will immediately lose your vehicle.  The BHPB dealer can roll over the payment to the following month, depending on your situation. This means that you will have to pay the outstanding payment, including the loan payment for the following month at the same time.  But missing out on a payment usually attracts some fees that you also have to pay.  

Most dealers will not roll over the loan for more than 3 consecutive months, which is important that you only invest in an auto loan that comes with manageable payments.  This is where Comparilon comes in. We will provide you with a list of all the BHPH options available in your region. We only work with reputable dealerships that can also advise you on the best vehicle to buy, depending on your financial situation.  You only need to call or write us an email for quick, affordable and reliable auto financing services.

Financial renewal

When it comes to refinancing an auto loan, the dealer simply reduces the initial rates and imposes a new repayment term and rate on the outstanding loan amount.  You should, however, watch out for long repayment period since longer loan terms tend to increase the interest rates.

Increased repayment term

You can also request the BHPH dealership to move the missed payment to the end of the repayment period.  This will help you make the subsequent payments on time and avoid late payment fees.

Partial car payments

 It is also possible to only pay half of your monthly payment and avoid incurring extra charges.  The BHPH dealership will then add the outstanding balance to your next monthly installment.

If, for instance, your monthly payment is $550, the dealer may allow you, upon request, to only pay $275 in each of the following two months. This means that you will have an outdating balance of $550.

Once your financial situation improves,  the balance will be spread into the next installments until it is all cleared. You can then resume your normal repayment plan of $550 per month until the loan payment is over.  This is one of the best options that if your lender agrees, it will help you stay out of debt.

Repossession

In this situation, both the consumer and the car dealership will eventually lose.  Note that in repossession, all your installments, fees and even the down payment will not be refunded.  This is because repossessed cars tend to sell at a lower price due to depreciation.

When should you consider in house car financing?

You can consider in-house financing or BHPH dealership when;

  •         You have a poor credit score or no credit history
  •         Other auto financing options  are expensive
  •         When you intend to borrow a large percentage of the car purchase price

Buy Here Pay Here no credit check-Advantages

Get access to a wide range of quality vehicles

If you spend enough time to research the best BHPH dealership services, you will get access to a wide range of car models with the latest features.  You will also get value for money, considering that reputable dealerships thoroughly inspect their cars before closing a sale. If you have poor credit and earn at least $5,000 per month, you will have higher chances of getting a brand new car at a BHPH dealership.

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Highly accessible

Applying for an auto loan from a BHPH dealership involves minimum paperwork.  This is because the whole process is completed from a single location; you therefore don’t have to worry about third parties.

Fast and easy process

One of the reasons why BHPH dealerships are becoming more popular is due to their fast auto lending process.  If you need a car urgently, these are the people that you should consider working with.

Buy Here Pay Here no credit check-Disadvantages

Expensive option

BHPH dealerships tend to charge high rates and fees on their loans.  The rates are mostly higher compared to traditional financing institutions and auto lending companies.

Your credit score may not improve

Not all BHPH dealerships report borrower’s credit information to the credit bureau.  This means that your credit score may not improve even when you pay the loan responsibly.

Exploitative tendencies

Some BHPH dealers also impose extremely high late payment fees.  By the time you are through with the loan repayment, you may feel so much trained that you can even regret why you selected the car in the first place. Ensure that you first discuss with the dealer about the loan terms-just to know what you are getting yourself into.

Hidden charges

These hidden charges can be as high as $1,000 for some dealerships that are only out there to exploit unsuspecting car shoppers.  If it is not the inspection fees, then it is the administration fees and many more charges that are never mentioned before applying for the loan.

No warranties

After purchasing the vehicle, you will be the one to take care of the repair expenses.

Harassment due to late or skipped payments

If you do not pay your installments, the car dealer will immobilize the vehicle with the use of an online tracking system.  The same applies when you do not pay your installments on time.

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Tips to improve your chances of getting approved for BHPH financing with no credit history

Come up with a budget

If you are comfortable spending $500 or less as monthly installments for the loan, ensure that you only look for a car that can accommodate that budget.

Make use of a finance calculator

With the aid of a car loan calculator, you can estimate your monthly payments, which makes it easier to know whether you can afford the car.

Put a down payment

The more money you put as down payment, the more manageable your auto loan will be. It is advisable to save at least 40% of the vehicle purchase price as a down payment.

Shop at the end of the month

Most BHPH dealers provide attractive offers for auto shopping at the end of the month.  This is because most employees get their salaries at this time. You can take advantage of these offers and avoid borrowing more or being charged high interest.

Alternatives to car merchant financing

Save enough cash for your car purchase

If you are patient enough to save enough cash, there won’t be any need to borrow. Besides, you can get yourself a brand new vehicle or a used car in perfect condition-so long as you do a thorough inspection.

Improve your credit score

If your credit score is lower than 550, come up with ways to improve the score before finding a car retailer.  You can also check your credit report to ascertain that there are no errors before you apply for the loan.

Look for private sellers

You might have a relative or close friend who is planning to sell their vehicle.  If so, then it can be a perfect opportunity to own a car without paying high interest.

Staff auto loans

If the company you work with provides this option then well and good.  When you compare these options to auto financing for people with bad credit, you will realize how much money you can save when working with your employer.

Consider family and friends

If you are really interested in getting a car but do not have enough credit score to secure a traditional auto loan, your friends and family can come to your rescue. With their financial support, you can finance your car and repay the money with low or no interest at all.

Mistakes to avoid when applying for BHPH financing with no credit check

  •         Failing to inspect the car you are about to buy, especially when it is a used car
  •         Buying a rebuilt title vehicle
  •         Agreeing to high insurance prices

Frequently asked questions on BHPH financing with no credit check

What is a BHPH vendor?

This is a form of in house auto financing where the retailer agrees to finance the car without involving a third party.  This means that banks, credit unions or even online car loan lenders are not involved in the deal. Also, BHPH dealerships do not focus on your credit score. Rather, they consider your level of income to determine whether you are able to repay the debt.

How do BHPH car lots work?

Just like online auto loans, each BHPH trader has specific requirements that you need to meet.  Once you meet these requirements, the dealer will show you the different types of vehicles they have, together with their prices.  When you agree with the dealer on the loan terms, the keys will be handed over to you. But the car title will remain with the dealer until your loan repayments are cleared.

How much will I pay as interest if I have poor credit?

This will depend on the maximum interest rate allowed by your state. Some buyers can charge interest of up to 30% on the loan. But the national average for most Buy Here Pay Here dealerships is around 20% APR.

Does the lemon law apply?

Every state also has its own lemon law requirements. In California, for instance, the lemon law requires Buy Here Pay Here dealers to give 30 days’ replacement or refund on used cars.

Are BHPH offers regulated?

BHPH dealerships are regulated by the Department of Financial Institutions.  The dealerships are not strictly regulated by the Federal Reserve. The department of commerce also regulates these dealerships.

Do BHPH dealerships require insurance?

Yes. The insurance protects the BHPH dealer in case your car gets involved in an accident before you clear the loan.

How can I get out of a BHPH contract?

First, you have to meet all the lending requirements before you are cleared from the contract.   You can get out of the contract once you have repaid the whole loan amount-which includes the principal, interest rate and any additional fees.

Conclusion

BHPH dealerships have a wide range of vehicles that you can choose from depending on your budget.  The dealers also provide auto loans for car shoppers with poor credit. So if your aim is to get a high-quality vehicle and at the same time build your credit, you can achieve both goals at a BHPH vendor.  The benefits, however, may vary from one BHPH merchant to another. You therefore should ensure that you do background research before choosing a dealer to work with.