The dealership known as buy here pay here doesn’t only sell vehicles of your choice but they act as the bank too.
If you aren’t familiar why, they provide in-house financing to people who have no other choice but to turn to buy here pay here dealership because usually, they are most likely declined by banks and auto loan companies because of their pending bad credit card balances, missed payments of mortgages, repossession and the like.
In short, the buy here pay here cars dealers accommodate people with bad credit history and offer them with lending options which you can directly pay to them.
If you aren’t qualified for traditional cars dealerships because you have experienced bankruptcy or other serious financial issues before, then turn to dealerships offering in-house financing and a chance to qualify for a pre-owned car.
When you turn to buy here pay here car lots experts, they offer fast approval process, which lets you save much of your time.
Some even provide low to no down payment option, and the payment terms are even flexible.
So if you want to know how to qualify for this auto financing plan, refer to these tips that are surely helpful for you.
You can request for a Carfax report so you can go over the history report of the vehicle. If your dealer would deny this to you, it’s better to look for another unit or shop for a car elsewhere.
If you have chosen a car you’re much interested in, come back and take a mechanic with you to a buy here pay here car lot to check the car’s engine, performance, specifications and other issues before negotiating with payments. Choose a mechanic who’s honest and not biased.
It cannot be avoided to have a negative equity in the car that you want to purchase in buy here pay here dealership.
But to avoid higher amount of total payments, opt for higher down payment at shorter term. This kind of deal will help you finish off your loans in a short period of time.
Some dealerships provide tactics that pressure potential car buyers to acquire the deal they are offering without knowing what the interest rates.
Ask about the total cost of the car, the interest you have to pay and other charges so you can compare it to other bhph dealerships.
Dealerships should have no problem in providing you with at least five references. These references shouldn’t be connected in any way to the dealer, like their kids,relatives, partners or close friends.
It should be past customers who have experienced their service firsthand. If possible, ask your friends if they know someone else who have been buying a used car from buy here pay here.
A down payment is your initial pay, and most dealerships ask for down payment. Putting some money down in cash is beneficial so you wouldn’t suffer from higher interest rate and huge monthly payments.
Instead, you can focus on saving and rebuilding your credit score.
If you are qualified for the buy here pay here financing, prepare the requirements to be submitted so you won’t keep on coming back to the dealership to comply all the paperwork.
Submit your pay stubs so the dealership will know you have the capacity to pay your monthly obligations.
Secure a copy of at least two utility bills with your name on it and home address. If you have been renting, show a rental agreement or mortgage contract to them.
Have your social security card ready or a certified copy of your birth certificate so it would be easier for buy here pay here car dealers to approve your auto loan.
To drive legally the vehicle you will be buying, have your license ready. The dealership will check if the name and address you presented match your identification.
If you don’t have a car insurance, you can obtain it after signing a contract to the dealer. They will help you find an insurance company where you can apply online.
In case you are trading your old vehicle, take the title with you and show it to the lending company. The title can help determine how much can be verified.
Instead of credit history check, buy here pay here dealerships require a down payment, depending on the vehicle’s sale price.