FAQ – Frequently Asked Questions and Answers

Can I finance a car if I don’t have any credit?

In most cases, you can finance if you do not have any credit history. In fact, that is one of the types of customers that do business with Buy Here Pay Here car dealerships because traditional lenders typically don’t want to take a chance on the car buyer that does not have any credit history. In the car business the person with no record of any credit is called a “ghost” or “credit ghost” because they do not exist according to the credit bureaus.

Can I choose a car and drive it home the same day?

In many cases you can drive home the same day. There are a couple of variables to be considered but the idea is to get you into your car of choice as soon as possible. There are times when it may take a day to get a final approval depending on whether or not you have all the required stipulations with you at the time of purchase, your personal credit history and that you meet any down payment requirements

Will I qualify if I recently had a discharged bankruptcy?

As soon as your bankruptcy is discharged you can apply for in house financing at a Buy Here Pay Here Car dealership. Make sure you have a copy of your discharge and the auto financing specialists can get to work on approval for auto financing. Some dealerships offer financing even if you’re in an open Chapter 13.

I am currently in bankruptcy and it has not been discharged yet. Can I get approved for financing?

Until your bankruptcy is discharged getting approved for an auto loan can be difficult. I didn’t say impossible, but difficult. You will need to talk to a specialist at a buy here pay here car dealer in your area.

Can I buy a car even if I have really bad credit?

In most cases yes, that’s what buy here pay here car financing is designed to do – help people with extremely poor credit profiles. Every situation is different and needs to go through the application process before you will know for sure but in most instances, if you are employed (the longer the better) and have lived in the area for a reasonable period of time, you have a good shot of getting approved. In addition, the amount of your down payment is more important than your credit score. Buy here pay here dealers want you to have skin in the game.

Do I need a down payment?

Yes and the amount of down payment a dealer requires may be tied directly to your credit profile. Generally speaking, the poorer the credit, the more down payment required.

What interest rate do buy here pay here dealers charge?

Buy here pay here loans are considered very risky and the riskier the loan, the more a lender is going to charge. Typically, the interest rate you pay is based on your personal situation and is determined by the auto dealer subject to maximum state usury laws. For this reason, you should look to finance as little as possible and for as short a term as possible.

What do I need to bring to the dealership to buy a car?

First and foremost you will need a valid driver’s license, a pay-check stub to prove that you are employed, proof of residency such as a utility bill, and your down payment. You will also need a list of references for the application process. All dealers have slightly different requirements, but these items will take care of most everything needed to qualify for financing.

How expensive of a car can I get at a Buy Here Pay Here Dealership?

There really isn’t any amount set in stone in regards to how much you can borrow, but there are guidelines that are based on your debt to income ratio. Again, the idea here is to be reasonable and borrow as little as possible.