Bad credit is a burden but it does not have to be that way. You can easily find a way out of a bad credit situation by simply financing a vehicle. The 2 biggest purchases in a person’s life are a car and a house and both usually require fairly large loans. Not everyone has thousands lying around to buy either, and if they have a spotty re-payment history on prior loans, the only options left are bad credit car loans. Buying a car with bad credit will then give you the opportunity to improve your credit score.
How companies determine whether or not to lend you the money is your credit profile. If you have a low score most companies won’t lend you anything for an auto because you’re considered high risk. That doesn’t mean you can’t get loans ever, it just means you have to go through companies that specialize in bad credit auto loans.
Most of these are called special finance or buy here pay here. These kinds of loans are designed to help people get car loans despite past bankruptcies, slow pay, repossessions, or other past financial issues. If you have any of these issues and a low down payment, the best way to go is a buy here pay here auto dealer.
Financing a Car with Bad Credit
Your financial score does not matter at bad credit car dealerships. Instead, bad credit car dealers base their finance approval on stability, not credit score. This means that they take into consideration your time in the area and your time on the job, rather than payment or bad financial history. It also means all past financial burdens are welcome, even the bad ones, and that includes the typical bad ones such as foreclosures, repossessions, bankruptcy, missed payments, late payments and unpaid medical bills.
Another perk of bad credit dealerships is that they accept low down payments. Buyers can pay a smaller down payment, drive off with the car and pay the rest of the down payment off over 45 days. Sometimes they’ll even defer your first payment for 60 days before any monthly loan installments are due. They are also more flexible then regular franchise dealerships and understanding if you’re in a bad or tough situation. They will also try to make your payments affordable so you don’t end up with another potentially bad financial burden. Contrary to popular belief, BHPH dealers don’t want your car back. They actually want you to succeed.
Bad credit car lots have a wide range of inventory that includes automobile models such as Ford, Mercedes, Lexus, BMW, Pontiac, Jeep, Chrysler, Saturn, Honda, Toyota, Buick and Chevy. They have cars, mini vans, SUV’s, full-sized pick up trucks, small pick up trucks, full sized vans and everything else you can think of. Some dealers specialize in certain types of vehicles.
Most bad credit no credit car dealerships are located in and around cities but you can also find them in small rural areas and small towns as well.