Shopping for a new car, truck, or SUV in Hawaii?
Have you been turned down for an auto loan before? You’re not the only one — more than 1/4 of Hawaiians suffer from bad credit. Many banks, credit unions, and other traditional car lenders rarely approve auto loans with common credit problems:
- Poor Credit
- No Credit
Luckily, many dealers have responded to this problem by offering in-house financing; that is, they extend credit to their customers out of their own pocket.
BuyHereNPayHere.com can help you get approved for financing from one of the many buy here pay here car lots in our Hawaii dealer network. When you submit your application, our online service will go to work matching you to the best Hawaii 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.
Buy Here Pay Here Auto Sales
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 lose up to 1/4 of their value the moment the tires hit the street. That’s because you pay retail, but as soon as the car is sold, dealers will only pay wholesale to get it back. 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. 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.
New Car Budgeting
Most financial experts recommend dedicating 20% of your monthly budget to transportation costs. Keep in mind that this includes more than just your car payment. Fuel, auto insurance coverage, maintenance, tag and title fees, and any other costs such as public transit or other cars all factor into this budgeting allocation. So if you take home $3500 per month, that’s $700 to spend.