Consumer Car Buying Advice Blog

Many bad credit customers would be better served by not using a buy here pay here dealer for their next vehicle purchase

We Finance Everyone

At Auto Credit Express we know that customers with bad credit that want to buy a car often end up dealing with a Tote the Note car lot. “Tote the Note” is a phrase used by We Finance Everyone car dealers – also known as Buy Here Pay Here or “BHPH” dealers. These car dealers often provide loans to people with bad credit with no credit check (provided they meet other qualifications). Although these Tote the Note car lots may finance everyone, there is a down side to getting one of these no credit check auto loans from a We Finance Everyone car dealer.

The negatives

One aspect of these dealers that most consumers don’t realize is that Tote the Note car dealers rarely report the loan payment history to the credit reporting agencies. This means if you are trying to rebuild your credit rating, a no credit check car loan from a We Finance Everyone car dealer probably won’t help you raise your credit score. In addition:

• Most We Finance Everyone car dealerships require weekly payments. While this makes each individual loan payment lower than, say, a traditional monthly payment, the need to stop by the dealer every week can become quite a hassle over the length of the loan.

• More and more Tote the Note car lots are installing remote engine kill switches on the vehicles they sell. If you do not make your payments on time the car dealer can disable the vehicle – wherever it may be at the time. Not only can this prove to be an embarrassment, it is also inconvenient and can really complicate your life.

• No Credit Check car dealers often sell older high mileage cars because they are not restricted by the lender in terms of vehicle age or mileage restrictions. Because of this, some of the vehicles that they offer for sale are not that reliable.

An alternative

If you have bad credit and want to re-establish a good credit rating, we recommend that before you buy a car from a Tote the Note car dealer you first try to get an auto loan from a traditional subprime auto finance company that works with leading area franchised (new) car dealers. These days, even in the current poor economic climate, there is a subprime lending program for nearly every credit situation: bad credit, no credit and bankruptcy. There are even auto finance companies that will ignore your credit score. Instead, these lenders base their approval on other factors such as job time, income and special circumstances that may have caused a sudden drop in your credit score – such as medical expenses that relate to bad credit.

The subprime car loan

The biggest advantage of getting an auto loan through a national auto finance company is that your timely payments will be reported to the credit reporting agencies and will help improve your FICO score. There are also other advantages:

• You make monthly payments, instead of weekly payments. With most lenders, you can even set up an automatic payment program in which your car payment is withdrawn from your checking or savings account and automatically forwarded to the lender on the same day each month.

• A national auto finance company will never install a kill switch. In fact, most lenders will offer you a ten day grace period before they consider your payment late.

• In practically every case, you can buy a late model, low mileage car with bad credit, often with lower payments that you would have if you’d bought an old used car with high mileage from a BHPH dealer.

The bottom line

Everyone needs a car. Before you buy a car from a local Tote the Note, We Finance Everyone car dealer, consider a bad credit auto loan from Auto Credit Express. At Auto Credit Express, we specialize in helping people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Through our web site, www.autocreditexpress.com, we have helped thousands of customers locate the right dealer and get financed on a new or low-mileage used car. We do this by educating our customers. Our web site contains calculators and resources that will walk you through the application process, answer your questions and help you determine how much car you can afford. Unlike the vast majority of nameless, faceless “blind” bad credit car loan sites, our toll free number is listed on every page in case you have any additional questions.

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