Need to buy a car with bad credit? Then a local ND Buy Here Pay Here auto dealer may be your best option. Most old-school car lenders like banks and credit unions rarely 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.
In mere minutes, we can help you get approved for financing from one of the many Buy Here Pay Here car lots in North Dakota our network of dealers. When you submit your application, our online service will go to work matching you to the best local Buy Here Pay Here dealer in ND 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.
Buying a Preowned Vehicle
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 depreciate to only 75% of their original value as soon as 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.
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. 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.
Putting money down is smart if you have or can get the cash. It will reduce your car payments and possibly improve the terms of your auto loan. The good thing is that trade-ins of older cars are usually welcome at BHPH car lots. 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.
People are often unsure of how much to spend on a new vehicle. Most financial experts recommend dedicating 20% of your monthly budget to car payments and related costs. Remember that true cost of ownership exceeds your monthly payment installments. Fuel, car insurance coverage, repairs, tag and title fees, and any other costs like municipal transportation or secondary vehicles all factor into this equation.
Credit versus Financing Rate
We can’t stress enough that you should always know your credit score prior to signing the dotted line on any car loan package. Your financing rate is based largely on your credit history, and without knowing it, you could pay too much for your vehicle.
Additionally, credit report inaccuracies turn up more often than you might expect; after all, creditors report borrower behavior to credit bureaus like TransUnion, Equifax, and Experian, and mistakes do happen. You should check your credit report for false bankruptcies, unpaid medical bills, repossessions, and/or other credit problems that could inflate your financing rates to astronomical proportions.
When you apply for financing via our website, we’ll send a brief message to your inbox detailing how to check your credit report and find out what range of car loan rates you should expect.