Everyone needs a car. Not everyone has the credit to get one in this market.
Banks and credit unions have a set of standards you need to fall into to finance you. If you don’t fall within these parameters then you can’t get financed.
So what’s the solution? Buy here pay here auto sales is a great way to get a quality used car while you work on fixing your credit. Here are 5 ways that buy here pay here works in Colorado.
1. Bad credit or no credit: If you have bad credit then you probably can’t go to a traditional used car dealership. Your best bet in Colorado: buy here pay here. They will work with any and all types of credit issues.
If you have a bankruptcy, foreclosure, prior repossession, missed payments or any other credit issues, most buy here pay here dealers will help you.
2. Rebuild your credit: Most Denver buy here pay here dealerships work with independent companies that will help you fix your credit issues down the road. These companies will back date your payments and report them to all three major credit agencies. Making on time payments is one of the best ways to rebuild your credit score.
Not all of them will do this so before you buy a car from them make sure they will. Otherwise all of the payment history you made will go to waste.
A good way to know if you’re dealing with respectable bad credit buy here pay here car lots is if they do this. If they don’t, no matter how much you want the car don’t buy there!
3. Down payment: A lot of these dealerships will break your down payment up in a manageable way. This means you can easily qualify for a loan with a low down payment. Yes, buy here pay here low down payment is a thing. I’ve seen deals done for as little as $200 and sometimes with no money down in with exceptional credit.
Keep in mind that some buy here pay here dealers have to pay your taxes up-front. This means your low down payment won’t hit the principal balance of the car, which will keep the payments a little higher than if you had a higher down payment.
If that’s what it takes to keep you on your feet, go for it.
4. Short term loans: A lot of people want the longest term loan they can get. Their reasoning is that the longer the term of the loan, the lower the payments. It’s true that you have lower payments up front, but you’ll end up paying way more for the car by the time the loan is done.
Also, we live in a day and age where technology is constantly changing. The second you buy a car it’s already lost you money and it also has outdated technology.
We’re constantly bombarded with newer, bigger, better, faster, efficient things. Cars are no different. If you’re in a tough credit situation then you can’t get a newer car anyways so why not get a shorter term loan while you rebuild?
Often times a buy here pay here dealership won’t go past 36 months. This means you’ll own the car much faster which means you’ll end up losing a lot less money when you decide to resell it. A car can lose a lot of value if you have a 48-60 month loan. By then it’ll be too late.
5. 60 day deferred payments: Buying a car can be expensive. When you buy a car you usually have to pay your first payment 30 days later. After paying your down payment, taxes, fees and gas it can seem a bit tough to manage.
There are some buy here pay here dealers that will defer your payments for at least 60 days. This will give you ample time to save up money and fit your car payment into your lifestyle.
If you have any questions on how works please feel free to contact us with any questions you may have (303-623-4404). We’ve been in or around the car business for 30 years. We’re always happy to give advice without trying to sell you something, unlike most car dealers out there.