I have very bad credit, what are my auto loan options?
You can still have auto loan options if your credit score is in the deep sub prime range – which is generally defined as a FICO score of 500 and below. You might think that it’s impossible to get an auto loan with really bad credit, but it is. In fact, even if you’ve been turned down by a special financial dealer, you can still apply with a buy here, pay here dealer.
What is a Buy Here, Pay Here dealer?
A Dealer Buy Here Pay Here (BHPH) is a car land specializing in internal financing, which means that the dealer is also the lender. These concessions can be a great option if you’ve been turned down by a traditional or subprime lender.
Since buy here pay here dealers are also lenders, they usually don’t worry about your credit rating, your credit history, or where your income is coming from. The biggest advantage is that these places usually don’t look at your credit score, so it doesn’t matter if you have really bad credit.
Unlike subprime lenders, who typically require you to earn a minimum income of $ 1,500 per month before taxes for a single job, BHPH dealers don’t care how many jobs or sources of income you have, nor whether your income is taxable.
You can usually get approval to finance a vehicle as long as you meet their minimum income requirements. You can expect an above-average interest rate and a down payment requirement. These locations typically base the down payment requirement on the car you are financing, so the details vary.
Be aware that you may be required to make payments on a monthly, bi-weekly, or weekly basis, depending on your pay schedule. In some cases, an in-house lender may ask you to make payments in person, but most BHPH resellers are increasingly accepting online payments. However, it all depends on the dealership you are working with, and each one works differently.
What type of cars do BHPH dealers sell?
Buy here pay here resellers only sell used vehicles. Since these dealers are backing your loan, you are limited to cars on their lots. The vehicles they stock can vary widely, from newer, lightly used models to older cars.
When you buy a vehicle in a BHPH lot, you must have it inspected thoroughly, both inside and out, before purchasing it. These cars, like any used vehicle, are sold as is, so it’s a good idea to have a certified mechanic checked out.
If a dealership won’t let you take a car for a test drive or to a mechanic for an inspection before you buy it, then you should go.
Find the dealer for you
When you are struggling with a very low credit score, you should not give up on the hope of an auto loan. There are dealers who can help you out, and you may even be able to improve your credit score at the same time. If you are ready to find a dealer to work, let Auto Express Credit help.
We work with a nationwide network of special finance dealers, including BHPH dealers, who can help people get the auto loans they need. To connect to a dealer in your area, start the process by filling out our quick and free form. auto loan application form.