Shopping for a new car, truck, or SUV in California? Need to finance a car with bad credit? Then buy here pay here financing may be your best option. Most banks, credit unions, and automaker finance departments don’t approve auto loans for people with problems such as:
- Car Loans with Poor Credit
- Car Loans with No Credit
- Car Loans with No Cosigner
- Car Loans with Chapter 7 Bankruptcy
- Car Loans with Chapter 13 Bankruptcy
- Car Loans after Repossession
- Car Loans after Foreclosure
Buy Here ‘N Pay Here can help you get approved for financing from one of the many Buy Here Pay Here car lots in California we’ve partnered with. When you submit your application, our online service will go to work matching you to the best California Buy Here Pay Here dealer 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.
Buying a Preowned Vehicle
Pre-owned vehicles are at the core of most BHPH car lots in California — the best choice if you’ve had credit problems. New cars depreciate by 20-25% the moment the tires hit the street.
A vehicle for which you agreed to pay $18,000 over a 72-month period may be worth only $14,400 before the 1st month is up. 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.
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.
Most financial experts recommend dedicating no more than 18-20% of your monthly income to transportation costs. Remember that this includes more than just your car payment. Gas, insurance coverage, maintenance, registration and title fees, and any other costs like municipal transportation or secondary vehicles all factor into this equation.
Boosting your Credit Score with BHPH Financing
There are 2 common methods of boosting your credit score: secured credit cards and big 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 vehicle 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 (make sure they do), then your new car can be a powerful tool in rebuilding your credit.