Are you shopping for a new car in Missouri? Have bad credit? Then a buy here pay here auto loan may be your best option. Most old-school car lenders like banks and credit unions don’t approve financing 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 online.
We work with a vast network of Buy Here Pay Here dealers in Missouri. In minutes you can get approved to finance a vehicle of your choice from one of them. 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.
Know Your Credit
You should always know your credit score prior to agreeing to any vehicle financing deal.
Your auto APR rates are based largely on credit history. Without knowing your score you could overpay.
Moreover, credit report inaccuracies turn up more often than you might expect. After all, creditors report to credit bureaus, and mistakes do happen. You should ensure that your report doesn’t have issueslike false bankruptcies, foreclosures, repossessions, or other credit problems that could inflate your financing rates to astronomical proportions.
To check your credit score, we recommend a trusted source such as CreditReport.com.
Buy Here Pay Here Car 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 they leave the showroom floor. 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. 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. 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.
Most financial experts recommend dedicating 1/5 of your monthly budget to vehicle payments and costs.
Gas, auto insurance , maintenance, registration and title fees, and other costs such as public transportation or other cars all factor into this budgeting allocation. So if you take home $3500 per month, that’s $700 to spend.