Bad Credit Car Tips

Bad credit car buyers can get second chance financing through Buy Here/Pay Here lots. If your credit score is not good enough to qualify for an auto loan, a Buy Here-Pay Here program may be a great option to quickly get you a vehicle.

Let’s look closer at these items and find out what they mean, how they can be found, and what you should do when financing a vehicle.

What’s the Difference Between Buy Here and Pay Here Car Lots (

A Buy Here-Pay Here dealership does not just sell cars but can also handle your financing. In other words: the dealership is your bank. Purchase your vehicle here and pay your monthly payments here. These dealerships can help customers with credit problems, which may keep them from being approved for traditional bank finance.

Many dealerships offer a guarantee of approval. They do not care about your credit rating or past credit, but only your ability and willingness to pay the monthly installments. A decent downpayment and steady income are usually enough to get approval.

What To Expect When Buying an Auto

Buy Here Pay Here is a high-risk way to buy a car. These loans are second chances loans and are not loans most traditional banks will approve. Consequently, these dealers will typically charge a high rate for interest and finance for short terms (24 or less), will sell cars more than they are worth, and ask for a decent downpayment upfront.

To be approved for a Buy Here Pay Here lot, they will normally ask that customers provide:

*Proofing Income (pay Slip, bank Statements, W2)

*Proofof residence (current utility invoice)

*Proof Full Coverage Insurance

*5-10 References Family and Friends

*Valid Drivers’ License

*Down payment (roughly $800 minimum).

This small list usually suffices to approve you.

Most Buy Here-Pay Here car lots sell cars that are between 5-10years old. The vehicles have a little more mileage, usually between 80,000 and 130,000 miles.

Where To Find Them

These car lots can be found on the Internet, in the local paper, or even by driving down the street. Their advertisements will feature such phrases as:

*Buy Now, Pay Here

*We Finance

*In House Financing

*Note Lot

*We toss the note