Need to buy a car with bad credit? Then a buy here pay here car loan may be your best option. Most old-school car lenders like banks and credit unions rarely approve financing for applicants with bad credit, no credit, or other problems like repossession, foreclosure, or bankruptcy. BHPH car dealers, on the other hand, offer in-house financing. That means they lend you the money for your car out of their own pocket rather than going through an indirect lender. You make your car payments to them at the car lot, by phone, or online.
BuyHereNPayHere.com can help you get approved for financing from one of the many buy here pay here car lots in our Alabama dealer network. When you submit your application, our online service will go to work matching you to the best Alabama buy here pay here car lot given your individual credit profile, income, down payment, and vehicular needs. With your credit already approved for financing, you’ll enjoy the following benefits:
- Amplified Ability to Negotiate
- More Confidence
- No Fear of Credit Rejection
- Increased Focus on the Car You Want
Tips for Buying a Used Car
Most buy here pay here car sales are for used cars. This is usually the best choice if your credit history is marred by bankruptcy, repossession, or poor credit in general. New cars depreciate by 20-25% the moment they leave the showroom floor. That’s because car buyers pay retail, but as soon as the car is sold, dealers will only pay wholesale to get it back. That means a steep drop in value.
So, for instance, you’ll suddenly owe $15,000 for a new car that’s worth only $12,000. As you can imagine, that’s not a good place if you want or need to sell the vehicle. After all, you’ll have to come up with the extra cash to pay off the loan — often several thousand dollars. A preowned vehicle, on the other hand, has already undergone this initial drop in value, so you’re less likely to fall victim to the burden of negative equity.
Putting money down is always a good idea if you can afford one. It will cut your car payments considerably and possibly improve the terms of your financing deal. Fortunately, buy here pay here dealers are especially flexible when it comes to trading in your existing vehicle, even if it’s seen better days. Many dealers might not be as accepting of your trade-in if it doesn’t match the existing cars on the lot in terms of condition, age, and make. But with a BHPH dealer you’ll have a better chance to roll the value of your old vehicle into a down payment for your new one.
Most financial experts recommend dedicating no more than 1/5 (20%) of your monthly budget to vehicle payments and costs.
Remember that this includes more than just your car payment. Fuel, auto insurance , repairs, tag and title fees, and any other costs like municipal transportation or other cars all factor into this budgeting allocation.