Do you have a credit score of 620 or less, and you want to buy a car on credit? If so, you could be facing quite a challenge, especially if you don’t opt to work with a trusting loan-matching service like ours.
Because of approval problems, a growing number of consumers in Kentucky are switching to buy here pay here dealerships, which offer funding without a credit check. Generally they focus on your income and history of employment when it comes to approval. Since the loan is from the dealership, you’ll make your payments to the dealer, not to a third-party bank or lender. However, these dealers can be difficult to find. Often, the best way to identify them is through banners that say things such as: we tote the note, we finance, your job is your credit, or rent to own.
Getting Approved by Such a Dealership
You could jump in your car or truck and cruise all over town, searching for a buy here pay here dealership, but wouldn’t that be a waste of time and gas? Let us find you a dealership that suits your credit profile, income, and down payment. Here at Bluegrass Auto Finance, we take great pride in getting you approved to finance a car in less time, with fewer hassles. We offer our expertise free of charge, and there aren’t any commitments. Most of the dealerships in our network do report your payments to the credit bureaus, unlike regular BHPH dealers, which is crucial if you’d like to improve your credit.
Will I Qualify?
Unlike a bank or credit union, these dealers rarely have minimum credit requirements. That being said, you will need a minimum income of $1500 a month or $375 per week. That’s gross income, before taxes, not what you actually take home. Don’t meet the minimum requirements? You can still apply, as long as you have a cosigner who does. Essentially, these dealers are more focused on your income than your credit, which is why they’re commonly known as your job is your credit dealerships.
Money Down: Necessary?
Yes, down payments are common when working with this type of dealer. This is a high risk type of financing, so a down payment covers the dealer against losses sustained if the vehicle has to be repossessed. Quite often, the down payment amounts to what the dealer spent for the vehicle, meaning you might want to go with the lowest down payment possible. Fortunately, most of the dealers in our network offer lower down payments than you’d face at a regular BHPH dealer, where you could be required to offer up to 50% of the vehicle’s purchase price in cash or trade.
How to Avoid Repossession
The BHPH industry is infamous for the prevalence of repossession, with some studies indicating that up to 1 in 4 BHPH vehicles is repossessed. There will be many cars on the lot that are too steeply-priced, and you have to be sensible enough to avoid them. You need to select a sensible car or truck with relatively low payments. Also, all of the policies will be explained in detail in your contract, so be sure to read through them with the dealer. With an affordable monthly payment and solid understanding of your contract, you’ll have a fairly good chance of averting repossession.