Getting a car loan doesn't have to be a nightmare, even with bad credit.

Buy Here Pay Here Car Lots Near Me Explained (BHPH)

Are you having trouble getting a car loan because your credit score is too low? The good news is that your search for “buy here pay here near me” is complete. You can get easy and quick car finance approval through us.

buy here pay here near me

Loan Approval Requirements for Buy Here Pay Here Car Lots

  • Earn at least $2,000 a month – The dealer finance service is interested in helping buyers purchase a car when they can offer to cover the average monthly finance cost (which is $523) for vehicles. However, the deal shouldn’t exceed more than 25% of a buyer’s monthly income. So that’s why you need a minimum gross monthly income of $2,000.
  • Complete proof of identity
  • Resided in the city for a 6 month to 3 year period
  • A cosigner (not always needed)
  • A down payment offer of up to 40%

Read More About Quick Approval:

7 Tips to Getting a Car Loan on Damaged Credit

First Time Car Buyer Program

How to Get Car Loans for People with Bad Credit Fast & Secure

Dealer in House Financing

Buy here pay here dealerships near me

What Happens When You Can’t Afford Your BHPH Finance?

Rollover of your vehicle’s payment to the next month – The good news is that you won’t lose your vehicle’s rights immediately. Your seller will roll over a missed car purchase payment to the next month to make re-payment easy. If your temporary financial challenges are over, you’ll just offer to complete both finance payments plus the accrued fines.  Dealer staff can only give you two rollovers.

Financing renewal – The dealer works out lower finance rates by imposing a new interest rate and repayment period on your outstanding balance. However, the repayment periods put you at a disadvantage because you’ll probably pay higher interest rates

Increased repayment duration – You can phone your dealer finance service and request them to move your missed payments to the end of your purchase repayment period. Doing this helps you to cover subsequent payments on time and retain your car.

They may also allow partial car payments

Read More:

You can avoid late payment fines by paying half of your car payments until your cash flow improves. The dealer finance service will, later on, adjust your next installments by adding the outstanding balances. For instance, if you usually fork up $550 but the car lot allowed you to take care of $275 in June and July, then you would have a balance of $550.

Once your finance situation improves, the dealer will split your outstanding balance and spread it to your next installments. So, that means you’ll complete the next $775 in August and September. Then you’ll resume paying $550 for the rest of your vehicle’s finance period. These options help you stay out of further debt.

Repossession – Both buyers and sellers lose in this situation. The dealer will not refund your down payment or any selection of your installments. Why? Because the call will fetch a lower resale value due to depreciation.

buy here pay here car lots near me

Tip: The Bubble: Subprime Car Loan Delinquency Rates (Should You Care?)

Approved In-house Car Financing:

  • When you have an insufficient credit history
  • When other quick options are too expensive
  • When you’re planning to borrow a huge amount of cash

Read More: How to Improve Credit Score When You Have Bad Credit

Buy Now Pay Later No Credit Check Instant Approval Advantages?

A wide variety of high-quality cars

If you take enough time to phone and Google for a good helpful dealership service, you’ll have access to car inventory with the latest features. Plus, you’re guaranteed decent quality because dealer staff will do thorough inspections on the cars they sell. 

Customers who have subprime ratings and earn more than $5,000 a month can get brand new cars easy at BHPH dealerships who have a top-notch experience.

Highly accessible

Car dealer inventory financing options involve minimum paperwork because third parties aren’t involved.

Swift process

If you need a vehicle urgently but only have 40-50% of the value, in-house financing is the better process to search for.

Tip: How Many Years Can You Finance a Used Car?

Buy Now Pay Later No Credit Check Instant Approval Disadvantages

High risk of getting an upside-down loan – Let’s assume that your car’s original value is $25,000 and the car is worth $18,000. Due to the accident, your car’s value drops to $15,000. Now, the financing ($18,000) exceeds your car’s current value ($15,000) by $3,000. Is that bad? Yes, it is, because you’ll spend more money than you should to repay the lender.

No improvement on your credit history- You’ll have this experience with some car lot finance options but not all.

Exploitative tendencies (Beware of car lots) – Dealers can set expensive late payment fines. By the time a shopper clears what they borrowed, they may feel drained to the point of regretting their car selection. Pick up a phone and call the dealer service before you drive to their lot so you know what you’re dealing with.

Tip: Negative Equity Car Loan

Hidden charges – You might encounter hidden administration and handling fees that can get as high as $1,000. If not administration, then it’s inspection costs. Know your rights and buy carefully.

No warranties – Be prepared to take care of your own repair expenses.

Harassment due to late or skipped payments – If a shopper doesn’t take care of the monthly invoice, the car lot will immobilize the vehicle using an online tracking system which is totally within their rights. Imagine how embarrassing it would be if you’ve just refilled your gas tank but then the car won’t start due to late payments.

How to Improve Your Chances of Getting In-house Car Loans with No Credit History.

Choose a definite budget – If you’re planning to give $500 per month in installments, you should search for cars that are available within an affordable sales range.

Always use a finance calculator – A car loan calculator helps you to work out monthly installments for budgeting so you know what you can offer on a car.

Save up at least 40% – The higher your down payment, the lower your outstanding balance.

Shop during the end of the month – Friendly dealers use this finance offer to attract both cash and credit shoppers because it’s during this period that employees get their salaries. Doing this helps to reduce the principal of your loan.

Don’t tell the car lot you want to finance during cost negotiations – Bargaining for a good price lowers your monthly cost by reducing the loan’s principle.

What Are the Alternatives to Car Dealership Financing?

Save for sales on vehicles – You may choose to get a brand new subcompact vehicle or a used sedan as long as you’ve done a thorough inspection.

Raise your credit score to 550 – The lowest score you need to obtain financing is 550.

Approach private sellers – Do you have a friend or relative who’s selling their vehicle? Get a car without interest and just offer them cash.

Staff Auto Loans – Does the organization you work for provide this option? When you compare this option with bad credit loans, you’ll notice how much money you can potentially save with your employer. 

Reach out to family and friends – Shoppers interested in cash purchases can reach out to family and friends for a little financial support and avoid high-interest charges.

Tip: The Truth about Exotic and Classic Car Financing: 144 Month Auto Loans

buy here pay here used car dealership

Avoid These Three Mistakes When Seeking In-house Financing with No Credit Check

  • Purchasing a rebuilt title vehicle.
  • Failing to inspect a used car you’re about to finance.
  • Agreeing to high dealership insurance prices.

Avoid such expenses by getting your own car insurance coverage.

You Might Also Like: How to Create a Healthy Budget for Your Car Loan

Most Popular FAQ’s

What is a buy here, pay here dealer service?

This can also be referred to as “BHPH” or in-house car loans. So, what is it? It’s where a friendly dealer agrees to sell you the rights to a car in their inventory on terms without involving a third-party lender. You won’t have to get approval from any bank or lender. In fact, a BHPH dealership doesn’t check credit scores.

How do buy here, pay here car lots work?

Each dealership has a list of requirements to finance shoppers.  When a customer fulfills these conditions, the dealer shows different inventory and car prices available to the buyer then hands over the keys once an agreement has been made. Your title remains with your car lot during the repayment period.

How much interest will I pay with my bad credit?

Depending upon the state’s maximum allowed interest rate, a buyer can rack up over 30% interest for a BHPH finance offer. However, the national average for most BHPH dealerships is about 20% APR.

Does the lemon law apply to these bad credit dealers?

All 50 states have different lemon law requirements. In states like California, the lemon law on used cars requires that BHPH dealers provide a 30-day refund or replacement on used cars.

Who regulates a BHPH Offer?

BHPH dealers are not regulated strictly by the Federal Reserve. Instead, they are regulated at the state level by the Department of Financial Institutions or the Department of Commerce.

Why does a car dealer service require insurance?

Since you’re financing the vehicle through the friendly dealer they need you to understand the requirement for you to spend money on full insurance coverage on the vehicle until you take care of the entire loan. This protects the dealer’s financial investment in your car should an accident happen.

What happens if customers total a buy here, pay here car?

Because you are required to have full insurance coverage on your vehicle you will take the insurance payment you receive and pay-off the remaining balance to the dealer service. You can use whatever is left over for a down-payment on a new or used vehicle.

How to get out of a BHPH contract?

You will need to satisfy the lending requirements before you’re free and clear from your contract. You can give the car back and repay the remaining balance or in most cases, you can simply pay-off the remaining balance of the car.

How do customers sell a car you still owe money?

In most cases, you can cover the remaining debt on the vehicle with the money you made from the sale and then transfer the title into the new owner’s name in a way that feels comfortable and safe to the new buyer.

Apply Now Get Started