Buy Here Pay Here Financing & Car Loans For People With Really Bad Credit
Buy Here Pay Here financing is available through certain used car dealers known
as Buy Here Pay Here car lots that offer in-house car loans for people with
really bad credit, similar to
bank car loans
, through a Related Finance Company or RFC. This is a highly specialized type
of car dealership and not every car dealer offers buy here pay here car financing.
Dealers that offer buy here pay here car financing are most recognizable by
their storefront ads such as "In-House Car Financing", "Your Job Is Your
Credit", "No Credit Check Car Loans", "We Finance Everybody", "Get Car
Financing Regardless of Credit" and "Easy Car Financing" or “Car Loans
for People with Really Bad Credit”
Dealers that make buy here pay here financing available usually sell
older used cars at higher than market prices and may ask for a down
payment that essentially covers their investment in the car. The dealer's
profit is earned on the finance charges and are usually set at the
highest allowed by usury laws in the state a vehicle is purchased.
The length of these car loans for people with really bad credit is
usually between 12 and 36 months with car loan payments paid at the
dealership on a weekly or bi-weekly schedule payable by cash or money order.
Car Loans For People With Really Bad Credit
Buying a car through a dealer that offers buy here pay here financing is
an expensive proposition but may be the only option to get car loans for
people with really bad credit. If you are unable to get a loan through
traditional lending sources, here are some tips to make the best of the situation.
Have the car inspected by a qualified mechanic before you buy. These
cars are usually sold "as is" without warranties and since they are typically
an older car, you want to make sure it's in good condition.
Try to make the term of the loan as short as possible to reduce the
costs associated with buy her pay here financing.
Ask the dealer if they report your car payment history to the credit
reporting agencies. If they do and you make your car loan payment on time,
it will improve your credit report and credit score and put you in a better
position the next time you purchase a car.
Buy Here Pay Here Financing Summary
Although not ideal, car dealers that offer buy here pay here financing
exist for a reason – to provide car loans for people with really bad credit.
If you're in need of basic transportation and are not able to get car a
loan through traditional car loan companies, then buy here pay here
financing may be your best option.
