Buy Here Pay Here Car Dealerships Explained
Buy Here Pay Here can seem attractive if you can’t get a conventional loan. With this type of financing, you can get the same services as with traditional lenders and pay the dealer directly. A deal like this seems great, right?
In this guide, we’ll explain these no credit check auto loans in great detail. As a result, you’ll be able to make an informed decision about your loan. In addition to this, we’ll give you some tips on how to avoid problems if you are buying from a dealer.
A bad credit score makes getting a conventional loan hard. But, there are lenders that will overlook it and provide you with a loan with reasonable terms. Get approved bad credit auto loans with us. You don’t have to limit yourself to no credit check auto loans from dealers. Dealers put down restrictions that can be hard to follow. We will match you with lenders that can give you a deal to suit your needs. Consequently, you’ll get the car you want without paying a huge down payment or high-interest rates.
All You Need to Know about ‘Buy Here Pay Here’ No Credit Check Auto Loans
- All You Need to Know about ‘Buy Here Pay Here’ No Credit Check Auto Loans
- Real Terms and Costs
- Bad Credit Car Loans from Us Vs. No Credit Check Auto Loans
- Eligibility Requirements for No Credit Check Auto Loans
- How to Find Bad Credit Car Loans with Good Terms
The concept of ‘buy here pay here’ ventures came from the 1970’s. In the 70’s, the economy took a turn for the worst and people struggled financially. Financial institutions were having trouble offering conventional loans. That’s when car dealers offering to finance became a huge hit.
Nowadays, the popularity of these loans has decreased. That said, they might still be a good option for you if:
- You don’t have any solid proof of regular income
- You have a poor credit score
- You are self-employed
- You want to buy a used car fast
Car dealers don’t mind if your credit score is bad. They know you may not have had a chance to build it up or have had some financial problems out of your control. Lenders who offer these loans with no credit check understand the risks which is why they put in place measures to protect their investments.
Understanding Buy Here Pay Here Dealers
Car dealers offering no credit check auto loans cater to people who can’t get conventional loans. Here are some reasons people go for the ‘buy here pay here’ option:
No Credit History
Most students and young people don’t qualify under the current lending eligibility requirements. This is because they haven’t had a chance to build up a credit history. That doesn’t mean they don’t need transportation. It also does not mean they can’t pay for their car.
A Recent Bankruptcy
The latest economic crisis forced many business owners into bankruptcy. This black mark can stay on their credit records for a long time. No credit check auto loans are an easy way to get a new car without the hassle of a credit check.
Bad Credit and No Co-Signer
Even if you have a poor credit score, you might be able to get a conventional loan with a co-signer. If you can’t find a reliable co-signer, this type of loan may be your only option.
Buy here pay here dealers may offer repayment options. But, in the majority of cases, you’ll need to pay cash. More often than not, you’ll have to make these payments in person. Today, getting a buy here pay here loan is almost only available from used car dealers. Some new vehicle dealerships offer this kind of financing for their used car selections. Therefore, you’ll have to go through a conventional credit check to get a new car from them.
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Advantages of Buy Here Pay Here
- Getting the chance to rebuild your credit score. This is possible if you make your monthly or weekly payments on time. To do this, the dealership must report to one of the three official bureaus.
- Repayment terms for buy here pay here no credit check auto loans vary from regular loans. You can try to negotiate an extended loan to get lower monthly payments.
- After making a few regular payments you may qualify to refinance your bad credit car loan.
Disadvantages of Buy Here Pay Here
- You have to look for these in person. This involves visiting dealerships and asking for all the details.
- Without the dealer reporting to one of the three bureaus, you can’t improve your credit rating.
- Some dishonest dealers sell vehicles in poor condition under the buy here pay here loans. They buy them at auctions and only do minor cosmetic repairs to make the car look reliable. Yet, the engine and mechanics of the vehicle will not be in good shape. As a result, you’ll pay more in repairs and maintenance.
With us, you’ll be able to do all the research from the comforts of your home. We can put you in touch with good terms that suit your needs. We’ll match you with the best lender for your situation and you’ll get approval online.
Built-In Security Measures in Buy Here Pay Here Cars
These Loans are a high risk for lenders. Therefore, dealers who sell cars under these terms use measures to protect their investments. Some of them are:
- Remote control devices. Buy here pay here lots use GPS trackers to find the vehicle if you fail to make a payment. The dealer reserves the right to lock away the car until the payments are back on track.
- Higher prices. high risk means higher rates. With a used car, you may end up paying too much by the end of the loan terms.
Read More: Applying for an Auto Loan after Bankruptcy
Real Terms and Costs
This might seem like a great option for people who are desperate for a car but can’t get a conventional loan. The truth is, dealers, compensate by offering the worst terms to borrowers.
They do this to set off the costs of repossession in case the borrower defaults on the loan. This is a costly process and the lender also has to make money. Therefore, the rates, down payments and other terms are usually higher.
When you resort to this type of loan, you always pay more than the car is worth by the end of the loan term. These dealers treat you like a lender with the worst possible score. This is regardless of your current personal circumstances. As the dealer is the one who sets the terms, you won’t get a chance to negotiate a better deal.
Consequently, you are likely to get a much ‘worse’ car loan than a bad credit lender will offer. To avoid some of the no credit check auto loans costs, refinance it after making several payments.
There is no avoiding a down payment with no credit check auto loans. In addition to this, it will most likely be higher than with other loans. In general, dealers calculate a down payment based on the cost of repossession. They add a percentage to make a profit in case the borrower defaults and they have to repossess the vehicle.
High down payments are always an issue when you need to get a car loan with bad credit. We can help you find lenders who need a small or no down payment. If you’re looking for a no credit check auto loan, you won’t have this choice.
Payments Terms and Sizes
The exact payment terms offered by dealers that provide no credit check auto loans vary. One thing they all have in common is high charges. You can only make small payments if you extend them over a longer period of time. Unfortunately, this won’t change the fact that you’ll be overpaying for the vehicle.
Often, dealers need weekly or bi-weekly payments made in person by the borrower. This can be inconvenient and can cost you in transport if your dealer is not located near you.
Your Credit History
A car loan is a great way to improve or build up your credit score. Unfortunately, this often isn’t the case. The majority of dealers DO NOT REPORT TO CREDIT BUREAUS. Complying with the loan terms and making payments on time will do nothing to improve your credit. Even if you manage to get a no credit check auto loan for a new car, it won’t help you in the future. Always check if the dealer reports to the credit bureaus before taking out a loan.
Bad Credit Car Loans from Us Vs. No Credit Check Auto Loans
No matter how embarrassing it might seem, going through a credit check can actually do you a lot of good. This allows the lender to determine how creditworthy you are and decide on the best terms to offer you.
Conventional lenders use your credit rating as the most important factor when developing your loan terms. This is the reason why people with a bad score either can’t qualify or get high rates and unfavorable terms.
Many lenders who offer no credit check auto loans disregard any ‘extenuating circumstances’. They then charge you the highest interest rates and down payment requirements.
Car Loans With Us
Our lenders look at your credit rating to decide on the length and size of the payments. But first, they look at your ability to repay the loan. Working with them gives you the chance to get a loan like a conventional one with low interest rates and a small or no down payment.
As these lenders disregard your credit history, you don’t have to feel limited to no credit check auto loans. We help people who can’t get approval from conventional dealers. We find lenders that are able to work with you on favorable terms.
The best part is that you can get pre-approved for a loan online. This means you’ll know exactly how much money you can spend on a car. With this, you can look for a car wherever you’d like. You won’t be limited to no credit check auto loan dealer lots. You’ll be able to buy a new, mid-class car with much better terms than at buy here pay here lots.
We can also help you find a lender for refinancing no credit check auto loans. Having a bad credit score is irrelevant to us as long as you can prove that you’ll be able to repay your debt.
Traditional Bad Credit Car Loans: Advantages
The advantages of bad credit car loans by far outweigh the disadvantages. Below are some of the key reasons a bad credit car loan could be the best option for you.
- The most important advantage over no credit check loans is the fact that you get to choose ANY CAR YOU WANT. As long as it’s price fits within your budget, you can get a new car at any dealership you like.
- The majority of lenders allow you to make payments online, via mail, or by phone. If your lender offers this option, you will be able to arrange automatic debit payments.
- You can rest assured your loan is working towards improving your credit score. Bad credit car loans report to credit bureaus.
Eligibility Requirements for No Credit Check Auto Loans
To be accepted for a no credit check car loan you will need to provide a list of information. The key eligibility requirements are:
- A valid driver’s license
- Proof of regular income (recent pay slips)
- The minimum weekly take-home amount from your current source of income
- Proof of residence (e.g. a bill)
- Proof of insurance for your car
Are No Credit Check Auto Loans the Best Choice for Me?
There is no doubt that in some situations, no credit check auto loans are your only viable choice. But, quite often, people don’t know how many great bad credit car loans are out there.
Having a low credit score is not a reason to give up on finding a traditional lender. We would recommend studying your options before making a final decision. This way, you can be sure that you’ve picked the loan that is best for you.
Try applying for bad credit car loans first to understand what kind of terms you can expect. Note that sending your applications to multiple lenders can lower your credit score further. We only one inquiry is put forward to the reporting credit bureaus. This means your score won’t suffer. You’ll get the best possible offer available based on your income and current rating.
For a bad credit lender, your income, and its stability are more important than your credit rating. With no credit check car loans from car dealers, they treat each borrower as unreliable. As a result, they offer the worst terms to protect their interests. Remember, when borrowing from a traditional lender, your credit score will improve as you pay back the loan.
How to Find Bad Credit Car Loans with Good Terms
Nowadays, going through a credit check is easy. Firstly, you don’t have to go to a lender in person. Secondly, you don’t have to face the possibility of public embarrassment with a rejection. You just fill out an online form and everything else is easy. Specialized institutions then go through your application while you wait for approval.
Finding a lender that will be willing to work with you despite a bad credit score has never been easier. Contact us and we’ll go through our database of lenders to get a deal that suits you. Getting a loan from them will allow you to improve your credit score and get better rates. You’ll get a good car without paying a small fortune for it.
We care about our clients. We understand that many of their money problems are out of their control. We offer help to anyone with financial troubles that cannot get a conventional car loan. We will do our best to provide you with alternatives to unfavorable no credit check car loans wherever possible.
We can offer you a variety of tips and helpful articles to help you with your search. You’ll then be able to make the best use of your finances and overcome the challenges you are facing.
Do you think that you have no choice but to go to no credit check automobile dealers? Contact us today and we’ll provide you with a more efficient solution. You don’t have to overpay for a car when you can’t get a conventional loan.
We put you under no obligation and there is no application fee involved. All you need to do is fill in a form and we’ll do the rest. Whether you need a bad credit car loan or want to know more about no credit check, we’ll provide you with a solution that will help you get back on your feet.
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