Shopping for a new car, truck, or SUV in Kentucky? Need a second-chance auto loan due to bad credit? BuyHereNPayHere.com is your online HQ for bad credit financing from a buy here pay here dealer near you.
BHPH financing came about as a reaction to how many banks, credit unions, and other traditional car lenders rarely approve auto loans for people with common credit hardships.
Buy Here Pay Here Cars For People with Credit Issues
Buy here pay here dealers grant auto loans to car buyers straight out of their own pocket (known as “in-house financing”). BuyHereNPayHere.com can help you get approved for in-house financing from one of the many buy here pay here car lots in Kentucky we’ve partnered with.
When you submit your application, our online service will go to work matching you to the best Kentucky buy here pay here dealer 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 Negotiating Leverage
- Zero Fear of Credit Rejection
- Focus on the Car You Want, Not the Financing You Need
Buying a Preowned Vehicle
Most buy here pay here auto sales are for used cars. This is usually the smartest option if your credit history is marred by bankruptcy, repossession, or poor credit in general. New cars depreciate by 20-25% as soon as 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. 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.
How Much to Spend
Most financial experts recommend dedicating no more than 18-20% of your monthly income to vehicle payments and costs. Remember that monthly car payment is not the only factor. Fuel, insurance , maintenance, tag and title fees, as well as any other expenses such as municipal transit or secondary vehicles all factor into this budgeting allocation. So if you make $2000 monthly, you should spend around $400 on combined vehicle costs. Speak to your financial adviser if you have questions.