Buy Here Pay Here lots or dealerships can make buying a car easier by offering in-house financing. They can offer loan assistance when banks and common dealerships won’t because of challenged credit.
How can you get approved for a car loan when you don’t qualify for traditional financing?
1. Determine what you can pay.
The last thing you want to do when you get to the dealership is worry about if you can make the monthly payment. Start with your living expenses. Make a list of all your bills, and don’t forget to add insurance and gas. Tally up your monthly costs and remember to leave a little wiggle room for unplanned expenses.
2. Have a down payment.
The more you can put down, the lower your loan payment. Some Buy Here Pay Here dealerships will let you put $500 down (contact your dealership for more information). If you can put down more, that’s great, but don’t forget you will also need money to register your vehicle, pay the first month’s insurance premium, and put gas in the vehicle.
3. Know your credit score.
The great thing about Buy Here Pay Here programs and dealers with $500 down programs, is that they know you may not have the best credit. Buy Here Pay Here dealerships are a great solution for those who are looking to rebuild their credit. However, going over your credit score and correcting any errors before applying for a loan will help you get approved faster and could get you a lower interest rate. Know your score before you go.
4. Make your monthly payments.
Many dealerships offer several convenient ways to make payments. How can you avoid making late payments? Work with the dealership finance manager to ensure your payment aligns with your pay dates. Making all the payments on time will build your credit.