Been turned down for an auto loan or financing before? Don’t worry; nearly 25% of all Vermonters suffer from a credit score below 620. Our network of VT Buy Here Pay Here car dealers take pride in offering second chance in-house financing to people of all credit types: bad credit, no credit, bankruptcy OK.
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.
Tips for Buying a Used Car in VT
Most Vermont Buy Here Pay Here auto sales are for used cars. This is usually the smartest option 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. 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.
A down payment is smart if you can afford it. It will cut your car payments considerably and possibly improve the terms of your auto 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.
Most financial experts recommend dedicating 20% of your monthly income to vehicle payments and costs. Monthly car payment is not the only factor. Gas, car insurance coverage, repairs, registration and title fees, as well as other expenses such as municipal transit or other cars all factor into this budgeting allocation.
Vermonters: Know Your Credit!
We can’t stress this enough. You should always check your credit report before signing any vehicle financing package. Your finance rates are based largely on your credit history, and without knowing it, you could end up paying way too much.
To check your credit score, we recommend a trusted source such as CreditReport.com.