Have you dealt with serious financial issues like bankruptcy, foreclosure, or repossession in the past? Any of these events can leave your credit score drastically diminished, making it exceedingly difficult to finance a car. To fit this need, buy here pay here car lots have been sprouting up across Nebraska. These dealers will finance virtually anyone, even those with serious credit issues like the ones listed above. Normally they focus on your income and history of employment when it comes to approvals. You make your payments directly to the dealership, often every week. Hence the name: “buy here, pay here.” These dealerships frequently market their services with slogans like: we tote the note, we finance, your job is your credit, or rent to own. Any of these basically mean the same thing: the dealership does not perform credit checks, and the dealer acts as both seller and lender.
Alternatives to BHPH Financing
As you may have heard, buy here pay here (BHPH) financing is loaded with potential risks and issues. The interest rates are unbelievably high, and the down payments are often on par with the very worth of the car being purchased. The good news is, you may not have to resort to a BHPH dealer just because you’ve dealt with bad credit, bankruptcy, or repossession. We work with a wide selection of non-BHPH dealers in Nebraska do financing for people with credit problems, but do so with more competitive rates and terms than you could expect from a buy here pay here dealer. The whole process is fast, safe, and free. Don’t delay. You could be showing off your new vehicle today!
Is My Credit Score High Enough?
Unlike a bank or credit union, these dealers rarely have credit minimums. That being said, many dealerships do have a minimum monthly income requirement: $1500. Keep in mind, this is your income prior to taxes are taken out. If you don’t earn $1500 per month, you may still get approved with a cosigner, as long as they have good credit Since they place more emphasis on your income than your credit score, these dealers will often tell you: “your job is your credit.”
Is There Cash Due Upfront?
Whether you opt for in-house (BHPH) or traditional financing, a down payment is typically required. The amount will vary depending on your credit and income, as well as the lender’s requirements. Trade-in vehicles can often take the place of cash when it comes to a down payment, and an amount equivalent to 10% of the value of the vehicle being purchased is typically required at minimum.
Can the Dealer Repossess My Vehicle?
Yes, repossession is quite common among vehicles purchased through BHPH dealerships, or any dealers serving people with bad credit for that matter. You will need to consult your dealer for information on recovery policies, but suffice to say that non-payment could quickly result in a recovery team showing up your door. For this reason, it is of utmost importance to avoid vehicles that stretch your budget in terms of the monthly payment. You will want a vehicle that seems well below your means to afford, so as to give you some breathing room in your monthly budget.