Need to buy a car with bad credit in South Carolina? Whereas most banks, credit unions, and manufacturer finance wings will reject 600 credit score car loans or lower, Buy Here Pay Here dealers are receptive to bad credit, repo, or bankruptcy. That’s because they aren’t reliant on 3rd-party auto lenders. Instead they offer in-house financing. That means they lend you the money for your car out of their own pocket. You make your car payments directly back to them at the car lot, by phone, or online.
Advantages of Financing Pre-Approval
- Maximized Ability to Negotiate
- More Confidence
- Zero Fear of Credit Rejection
- Increased Focus on the Getting the Best Price
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 by 20-25% the moment the tires hit the street. That’s because car buyers pay retail, but as soon as the car is sold, dealers will only pay wholesale to get it back. A vehicle for which you agreed to pay $12,000 may be worth only $9600 before the first month is up.
The result is what’s known as an “upside down car loan,” and nobody who’s been caught underneath one is likely to recommend it, especially if you ever want or need to sell the vehicle before it’s fully paid off. 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 can afford one. It will reduce your car payments and possibly improve the terms of your car loan. 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. Many dealers might not be as accepting of your trade-in if it doesn’t match the existing cars on the lot in terms of condition, age, and make. But with a BHPH dealer you’ll have a better chance to roll the value of your old vehicle into a down payment for your new one.
Credit vs Financing Rate
We can’t stress enough that you should always check your credit report before signing the dotted line on your auto financing package.
Why? Because your APR rates are based largely on credit score. 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 like TransUnion, Equifax, and Experian, and mistakes happen. You should ensure that your report doesn’t have issueslike false bankruptcies, unpaid medical bills, auto loan delinquency, or other credit problems that could inflate your financing rates to astronomical proportions.
To check your credit score, try a 30-day free trial from CreditReport.com.