Are you shopping for a new car in Alaska? Need to buy a car with bad credit? Then a buy here pay here car loan may be your best option. Most banks, credit unions, and automaker finance departments don’t approve auto loans for people 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 Alaska we’ve partnered with. When you submit your application, our online service will go to work matching you to the best Alaska 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 can step onto the car lot with added confidence and negotiating leverage. It puts the fun back in car shopping, enabling you to focus on the car you want, not the financing you need approved.
BHPH Buying Tips
Most buy here pay here auto sales are for used cars — best choice if you’ve had credit problems. New cars depreciate to only 75% of their original value the moment they leave the showroom floor. That’s because you 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.
Budgeting for your New Car
Most financial experts recommend dedicating 20% of your monthly budget to vehicle payments and costs.
Monthly car payment is not the only factor. Fuel, auto insurance coverage, repairs, registration and title fees, and other costs such as public transportation or secondary vehicles all factor into this budgeting allocation. So if you take home $3500 per month, that’s $700 to spend.
Buy Here Pay Here: Bad Credit Made Good
There are two mainstay methods of rebuilding your credit : secured credit cards and installment loans. A secured credit card is designed to help those with damaged credit begin rebuilding their score. It is “secured” by a savings account that holds sufficient funds to pay off the credit extended.
Big installment loans include car and home loans. Although most mortgage lenders are more discriminating about problematic credit history, a BHPH car dealer can grant you an auto financing loan. If you make your installment payments on a timely basis, and your dealer reports your payments to the credit bureaus (ensure he does), then your new vehicle can be a high-horsepower credit-boosting machine.