Shopping for a new car, truck, or SUV in Colorado?
Have you been turned down for an auto loan before? Don’t worry — more than 25% of Americans suffer from poor credit. Many banks, credit unions, and other traditional car lenders rarely approve auto loans with common economic problems:
- Poor Credit
- No Credit
But buy here pay here car lots grant auto loans to their customers directly.
BuyHereNPayHere.com can help you get approved for financing from one of the many buy here pay here car lots in Colorado we’ve partnered with. When you submit your application, our online service will go to work matching you to the best Colorado 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:
- Maximized Ability to Negotiate
- Decreased Anxiety
- Zero Fear of Credit Rejection
- Increased Focus on the Car You Want
BHPH Financing Tips
Pre-owned vehicles are at the core of most BHPH car lots in Colorado — smartest option if you’ve had credit problems. New cars depreciate to only 75% of their original value the moment the tires hit the street. 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.
A vehicle for which you agreed to pay $20,000 over a 60-month period may be worth only $15,000 before the first 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 — often several thousand dollars. A preowned vehicle, on the other hand, has already undergone this initial drop in value.
Budgeting for your New Car
Most financial experts recommend dedicating 1/5 of your monthly budget to vehicle payments and costs.
Monthly car payment is not the only factor. Gas, car insurance coverage, maintenance, registration and title fees, as well as any other costs such as public transportation or other cars all factor into this budgeting allocation.
How Buy Here Pay Here Car Loans Can Help Your Credit Score
There are two oft-mentioned methods of repairing your credit : secured credit cards and installment loans. Secured credit cards are 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 card balance. Basically, the savings account serves as collateral.
Large installment loans include vehicle and home loans. Most mortgage lenders are more discriminating about problematic credit history — especially within 1-2 years after a credit-damaging event — but a Colorado buy here apy here car dealer can often grant you an auto loan despite credit problems. If you make your installment payments on a timely basis, and your dealer reports your payments to the credit bureaus, then your new car can put you back in the fastlane toward good credit.