Buy Here Pay Here Auto Loans For People With Bad Credit
If you’ve had financial challenges in the past or just haven’t built a solid credit history, it may be tough to qualify for an auto loan through a traditional lender. The good news is that you may be able to find a used car that fits your budget at a buy here pay here (buy here pay here whiteville nc) dealership.
What is online payment tools?
These dealers offer in-house financing at their dealerships to help people with poor credit get a new car. This type of financing can be a great option for those with bad credit, but it comes with some drawbacks that you should be aware of.
Typically, buy here pay here lenders don’t run a credit check when approving an applicant for a loan. Instead, they often base approval more on a borrower’s income and proof of residence than their credit. The dealer will likely ask for a down payment and you’ll likely need to sign a contract with the dealership agreeing to track your car in case of default. Some BHPH lots also place tracking devices and ignition inhibitors on vehicles to prevent them from being stolen or driven away without the dealership first repossessing it.
BHPH lending usually has higher interest rates than bank or credit union loans, so it’s important to shop around to find the best rate. You can also save up for a down payment and try to qualify for an auto loan through a bank or credit union, which will often have lower rates than BHPH lenders.