Idaho resident? Need to finance a car with bad credit, no credit, or bankruptcy? Then buy here pay here auto financing may be your best option. Most old-school car lenders like banks and credit unions don’t approve auto loans 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 via the internet.
BuyHereNPayHere.com can help you get approved for financing from one of the many buy here pay here car lots in Idaho given your individual credit profile, income, down payment, and vehicular needs. This gives you a real boost when it comes to first stepping onto the dealer lot.
Advantages of Pre-Approved Financing
- Amplified Negotiating Leverage
- More Confidence
- No Fear of Credit Rejection
- Increased Focus on the Car You Want
Tips for Buying a Used Car in Idaho
Most Idaho buy here pay here auto 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 to only 75-80% of their MSRP as soon as the tires hit the street.
A vehicle for which you agreed to pay $20,000 over a 60-month auto loan may be worth only $15,000 before the first week is up. If you want to sell the vehicle, you’ll have a significant sum of debt to repay that the auto sale won’t cover, the car not being worth the amount of 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 an upside down car loan.
Though no money down car deals are popular among buyers these days, a down payment can reduce your car payments considerably and possibly improve the terms of your car loan. The good thing is that trade-ins of even older cars in not-so-perfect condition are usually welcome at BHPH car lots, meaning you can use trade equity as a down payment instead of outright cash-in-hand.
Budgeting for your New Car
Most financial experts recommend allocating no more than 20% of your income to vehicle payments and costs. Gas, auto insurance coverage, maintenance, tag and title fees, as well as other expenses such as public transportation or other cars all factor into this budgeting allocation. So if you make $2500 monthly, you should spend around $500 on combined vehicle costs.
Many financial experts recommend repaying an installment loan to rebuild your credit. BHPH car dealers can often extend an auto loan in spite of glaring credit problems. By making your payments on time month after month, you can repair your credit while enjoying a new vehicle.