Posts Tagged bad credit car loans

Buy Here Pay Here | Your Job is Your Credit

Buy Here Pay Here | Your Job is Your Credit

Have you gone into a car dealership only to be told you were denied for bad credit? They told you to come back when your credit is better. You end up trying to figure out how you are going to make it to your job, school, the doctor’s office, grocery store, or anywhere else. Instead of being frustrated and depressed, you can do something about it with the help of CarLotLoans. Thanks to the “buy here pay here” program, your job is your credit. If you are working, you could get a car. Long gone are the days of having to worry about having a perfect credit report.

Fulfilling the Transportation Needs of Your Customers

Regardless of whether you have good credit or not, you still need a quality vehicle to get you from one place to another. Today, you almost have to have a reliable source of transportation just to survive. Many customers who use “buy here pay here” do so because they cannot get the auto financing they need anywhere else. Without these dealerships, many people wouldn’t be able to purchase a vehicle.

Helping Customers Rebuild Their Credit

Instead of being stuck in a vicious cycle, you can get the financing you need to secure the automobile of your dreams. How many times have you been told you need to improve your credit, yet no one is willing to give you credit? It defeats the purpose. At a buy here pay here, your information can be reported to the credit bureaus to help you repair blemished credit. Be sure to find a dealer who does report to the credit bureaus. Since an auto loan is a form of an installment loan, it is one of the best methods for improving your credit rating. As your credit improves, you are able to qualify for better vehicles and larger loan amounts.

Reliable Transportation at Your Fingertips

We all understand how important it is to be able to have a vehicle to go back and forth to work and provide for loved ones. Can you imagine what the alternative would be if there weren’t any buy here pay here lots? Most individuals who come into these lots only have between $500 and $1,000 to use as a down payment, and some don’t even have that much.

If there weren’t any buy here pay here lots available, they would be forced to use that cash to try to buy a vehicle outright. By going to a lot, they may be able to get a vehicle that gets them where they need to be for a small payment out of every paycheck. Having a stable job is the first step to get into a vehicle and begin rebuilding your credit.

Now that you have an understanding of the many benefits that come with a buy here pay here loan from CarLotLoans, you can be on your way in the car. It may not be your dream car, but it’s the first step to rebuilding your credit so that you eventually you can buy that dream car. To get an idea of how much money you are going to spend on your auto loan every month, you can use the loan calculator found on the website. Knowing what you can afford beforehand can make the buying process simpler by saving you time and hassle. Before you know it, you will be driving off in your vehicle all thanks to a buy here pay here dealership.

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In-House Financing: What is it?

In-House Financing: What is it?

So you’d like to buy a car, but your credit score isn’t the greatest. Maybe you had a period of financial hardship that resulted in some late or missed payment. Perhaps a bad split-up with a significant other took an equally significant toll on your credit score. There are a lot of good people out there who, due to a run of bad fortune, ended up with bad credit. There are still options available for financing a car.

One of these options is in-house financing. Have you ever driven past a used car dealership and seen a prominent sign that advertises, “Buy Here Pay Here?” This sort of option is in-house financing, and can provide an attractive for people with less-than-optimal credit scores. It does, however, work differently than traditional financing options.

In an in-house financing model, the dealer provides the financing to buyers directly. There is no third-party, no bank directly involved. Because the dealer assumes the lion’s share of risk on these sorts of deals, they want to make sure that these “tote the note” deals see regular, on-time payments. Some dealers may require on-site payment and/or install a computer in your car that will de-activate the vehicle if you are late on payments, requiring you to make your monthly payments with little flexibility.

However, far less weight is placed on the buyer’s credit score to finalize the purchase, with more placed on the income and potential ability to pay back the loan. In this case it is even more important to ensure that you can afford your monthly payments on time every month.

In addition, this sort of loan can be a great option for improving your credit score, enabling you to refinance your car at a lower rate through more traditional channels, later on. Sometimes, an in-house financing deal can offer other options beyond the traditional 36- or 48-month financing, and can extend payments out further, enabling lower monthly payments (but sometimes significantly higher interest paid when all is said and done). In addition, since the dealer does not have to borrow money from a bank, and is selling you a car that the dealer owns outright, you might be able to negotiate a lower interest rate than with a traditional deal. This varies from dealer-to-dealer, however, and some dealers have higher interest rates due to the risk involved with this sort of model.

Perhaps the biggest advantage of in-house financing is that the purchase process can be significantly easier than with traditional loan options. Since your dealer might offer a number of options and incentives based on the fact that the money is coming directly from them, you might have an easier time negotiating a favorable payment rate. Options and incentives of this nature can include rebates, flexible interest rates, extended warranties, increased customer services, and more. The process can be much faster and more efficient, with fewer hoops through which you have to jump. If you’re looking to get a car with a minimum of hassle and quickly, in-house financing can be a good option.

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