Before you turn over your hard earned cash using buy here, pay here car lots for bad credit auto financing, there are some very important things that you should know that can save you a lot of money, and a lot of frustration. Knowing this information can prevent you from making a very big financial mistake.
You’re Paying Too much.
Do you want to pay $3,000 more for a vehicle than it’s worth? Do you want to pay $3,000 more in finance charges than you have to? You might be saying, “How is that possible?”
How Buy Here Pay Here Financing Works.
Normally, a bank regulates the maximum total sale price of a car, based on book value. They will not loan over a certain amount because the vehicle in question simply doesn’t support the collateral needed for the loan. When the dealer (buy here pay here or in house financing) acts as the “bank”, they can throw the book value out the window and charge whatever they want. This results in your paying thousands of dollars more for a used car than you ever would at a normal car dealership (that has bank limitations on loan amounts) or from a private seller (who isn’t that crazy). In addition, the finance charges that these small buy here pay here car lots charge, can cost you more than the sale price of the car itself. How does 29% interest on a car loan sound to you? Buy here pay here dealers charge so much in finance charges that they make credit card companies pale in comparison sometimes.
What’s the Solution?
Don’t be deceived into thinking that you have no choice. There are companies (http://www.BuyingCarswithBadCredit.com for listings) that are willing to help people that have bad credit, to get approved for a good car loan based on their monthly income. These types of companies provide services that can help people even with horrible credit, to get approved for a real bank loan with little to no money down. So many people could save thousands of dollars on both the price of the car they’re buying, the interest rate and finance charges would be lower, and the monthly payments, if they just knew what to do.
Regardless of your past credit history, whether you’ve had judgements, repossessions, Chapter 7 or 13 bankruptcy, medical collections, tax liens or whatever the case may be. Sure, many regular banks will turn you down for a car loan. It’s a matter of knowing what type of company to apply with and where to go to get it done. That’s what makes the difference between a “Yes, you’re approved” and a “I’m sorry, but we can’t do anything for you today”.
If this is you, and you have these types of credit problems, have confidence in knowing that there are sub prime auto lenders that are willing to help. They have basic requirements for approval that are easy to understand and easy to qualify for. Rather than applying with a major bank, you should apply for bad credit financing through special financing services that qualify applicants by their monthly income amount.
One of the best things about getting approved through a company like this, is that you don’t have to go from normal car dealerships to buy here pay here car lots trying to get approved. You can simply see what you qualify for online, make your loan approval arrangements and then start shopping for the car that you want or need.
There is nothing better than being able to pass by those buy here, pay here car lots knowing that you have been approved for a car loan, and are going to a real car dealership to pick out what you want to drive home.
It’s all about knowing where to apply. Visit http://www.BuyingCarswithBadCredit.com for a listing of the top companies that can provide bad credit auto financing as a positive alternative to using buy here, pay here car lots for your next auto purchase.