Are you shopping for a new car in Utah? Need to finance a car with bad credit? Then buy here pay here auto financing may be your best option. Most banks, credit unions, and automaker finance departments don’t approve financing for applicants with problems such as:
- Car Loans with Chapter 7 Bankruptcy
- Car Loans with Chapter 13 Bankruptcy
- Car Loans after Repossession
- Car Loans after Foreclosure
- Car Loans with Very Poor Credit
- Car Loans with No Credit
- Car Loans with No Cosigner
How to Get Approved
BuyHereNPayHere.com can help you get an auto financing loan from a Utah buy here pay here car lot near you. When you submit your application, our technology will go to work finding you the optimal BHPH car lot given your individual credit score, monthly income, and other factors.
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 Utah. This is usually the smartest option if you’ve had credit problems. New cars depreciate by 20-25% 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.
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. Putting money down is always a good idea if you can afford it. It will cut 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. 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.
How Buy Here Pay Here Car Loans Can Help Your Credit Score
There are 2 common methods of boosting your credit : secured credit cards and big installment loans.
A secured credit card is used by people with poor or lacking credit to build some good credit history through timely repayments. It is “secured” by a savings account that holds sufficient funds to pay off the credit extended.
Big installment loans include vehicle and home loans. Although most mortgage lenders are more discriminating about problematic credit history, a BHPH car dealer can grant you an auto financing loan. If you make your payments on a timely basis, and your dealer reports your payments to the credit bureaus, then your new car can be a high-horsepower credit-boosting machine.