Buy Here Pay Here Car Lots – The Bad Credit Car Buying Solution!

Buy Here Pay Here car lots are second chance financing solutions for bad credit car buying consumers. If your past or present credit situation is making it impossible for you to get approved for an auto loan, then a Buy Here Pay Here may be an excellent option to get you a new ride fast!

Let’s take a closer look and see what they are, what to expect when buying and financing a car with one and how to find them.

What Are Buy Here Pay Here Car Lots?

A Buy Here Pay Here is a dealership that not only sells cars, but handles your financing in house. In other words, the dealership is the bank. Buy your car here and make your payments here. These types of dealerships specialize in helping consumers with credit challenges that may be holding them back from getting approved with traditional bank financing.

Many of these dealerships practically guarantee your approval and are not so much interested in your past credit or credit score, but are very interested in your ability to make the monthly payments. A decent down payment and steady income, typically leads to an easy approval.

What to Expect When Buying a Car

When you buy a car from a Buy Here Pay Here car lot, it is important to keep in mind that the types of loans these dealerships make are considered high risk. These loans are considered second chance loans and are not loans that most traditional banks will approve; therefore, you will usually find that these dealerships will charge a high rate of interest, finance for short terms (24 months or less), will sell cars for more than they are worth and look for a decent down payment upfront.

To get approved with a Buy Here Pay Here car lot, they will usually request that a customer provide:

*Proof of Income (pay stub, bank statements, W2)

*Proof of Residence (current utility bill)

*Proof of Full Coverage Insurance

*5-10 References (family and friends)

*Valid Drivers License

*Down Payment (roughly $800 minimum)

That small list is usually all it takes and you are approved.

Most Buy Here Pay Here car lots sell vehicles that are 5-10 years old and have a bit higher mileage, 80,000 to 130,000 miles is common, but not always the case.

Where to Find Them

Buy Here Pay Here car lots are fairly easy to find, whether on the Internet, in your local paper or just driving/walking down the street. They will advertise with sayings like:

*Buy Here Pay Here

*We Finance

*In House Financing

*Note Lot

*We Tote the Note

Justin has over a decades worth of experience arranging auto loans for customers with bad credit and is the creator of He has created one of the largest Directories of Bad Credit Car Dealerships online where you can search for Buy Here Pay Here Dealerships.

How to Buy a Car with Bad Credit

There are good companies online that offer people with bad credit, the ability to simplify the car buying process. Here’s three options.

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A low credit score can certainly hamper your ability to buy a car. Most major banks and lenders don’t offer car loans to people that have bad credit. Fortunately, there are companies that provide auto financing for people that have credit problems. The “problem” with that is, that many of those types of companies charge very high interest rates and require down payments.

Is In House Financing a Good Option?

One such type of company that offers this to those with troubled credit, is commonly referred to as a “buy here, pay here car lot”. These companies generally always require down payments and charge very high interest rates, sometimes ranging well above 20% and as high as 30%, depending on state laws. Should you choose to entertain the idea of using in house financing through these types of dealers, proceed with caution and make sure you know what you’re getting yourself into.

Using Local Resources…

Other lenders that provide secondary auto loans can include credit unions and local banks. You can expect to pay a significant amount of interest on such a type of loan through these types of sources, although they are a better option than using the above referenced car lots. One advantage of using credit union or local bank financing is the ability that you would have to purchase a car from a private seller.

Is There a Simple Option to Buy a Car with Bad Credit?

Online companies that offer to simplify the process of getting bad credit auto financing offer a unique proposition. They can help to eliminate the need of filling out multiple applications, by offering a central point for applicants that allows them to be matched with a dealer or lender that will offer them a car loan, based on their individual credit history. These types of services vary in their scope of geographic coverage. Some sites provide localized service, while others are able to help people on a nationwide basis, therefore increasing the odds of approval through select associated bad credit car lenders.

For more information about good online companies and services that can help with obtaining bad credit car loans, please see or see the link above.