Need to buy a car with bad credit in Mississippi? Then a Buy Here Pay Here car loan may be your best option. Most car lenders such as banks and credit unions don’t approve financing for car buyers 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 directly rather than going through an indirect lender, and they are much more flexible when it comes to credit problems.
In minutes you can get approved for financing from one of the many Buy Here Pay Here car dealers in Mississippi with whom we work. 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 Mississippi. 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% of their original 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. That means a steep drop in value. 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.
Putting money down is always a good idea if you have or can get the cash. It will cut your car payments considerably and possibly improve the terms of your financing deal. Fortunately, Buy Here Pay Here dealers are especially flexible when it comes to trading in your existing vehicle, even if it’s seen better days. Whereas you might not get much in trade equity at a traditional dealer, you might find your existing vehicle can secure you a handsome down payment on your new one.
How Much to Spend
Most financial experts recommend dedicating 18-20% of your monthly income to vehicle payments and costs. Gas, auto insurance , repairs, tag and title fees, and any other expenses like municipal transit or other cars all factor into this equation.
Using Buy Here Pay Here Financing to Improve Your Credit
There are two initial methods of boosting your credit : secured credit cards and big installment loans.
Loans for vehicles or homes are another way to build your credit. Although most home 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 high-horsepower way to rebuild your credit.