Car shoppers with damaged credit often believe their only auto loan financing option is a BHPH car lot simply because they are unable to locate a new car dealer willing to help them
We know these dealers
Consumers with a recent history of poor credit are still having difficulty finding anything other than local BHPH (buy here pay here) car lots that are willing to finance an auto loan them.
At Auto Credit Express we’re well aware of this situation mainly because we’ve spent the last twenty helping car buyers with problem credit find those new car dealers that can give them their best opportunities for approved car loans.
Here is the reason thousands of these shoppers turn to us for help every year:
Finding the right dealers
While hundreds of car dealerships advertise poor credit car sales, quite a few of them turn out to be car lots that do nothing more than in-house car financing. For the most part these dealers don’t report car loans or monthly payments to the credit bureaus. While their customers will have transportation, neither their auto loans nor their monthly car payments will appear in their credit reports. The problem with this arrangement is that any positive activity won’t help their credit rating and, in most cases, they’ll be in basically the same credit situation the next time around.
Making matters worse, a high percentage of BHPH loans are made at small used car lots that are not associated with a franchised new car dealership. For the most part the vehicles they stock are older, high-mileage cars that are often unreliable. Not only that, but if these cars do have a warranty (typically not the case)it is usually very limited and covers just a short time and/or mileage period.
On the flip side, many franchised new car dealers don’t want to deal with the hassles that they associate with customers that have near-prime or subprime FICO scores. But in all fairness, that’s usually due to the fact that, unlike traditional auto finance, dealership employees that work with higher risk auto lenders have to undergo special training.
Add to this the fact that these dealers must then stock the right kinds of cars and the result is that many new car dealers have come to the conclusion that they don’t have the experience or the patience to maintain a special finance department while keeping the right types of vehicles in their inventories.
A new way to buy a car
As it has in other areas, the internet has changed things: in the way shoppers with good to excellent credit buy cars as well as how credit-challenged buyers can find new car dealers willing to work with them.
In the case of buyers with less than perfect credit, websites such as ours match their credit profiles and needs with dealers that not only understand these situations, but are also signed up with a broad range of lenders willing to consider higher-risk borrowers.
For applicants with credit issues, these franchised new car dealers offer a number of advantages over BHPH dealers:
1. Buyers typically have a choice of vehicles from a larger inventory.
2. Due to strict lender requirements, these vehicles are either new cars or recent model used cars with lower miles.
3. In most cases these cars are eligible for extended warranties that will cover a majority, if not all, of the loan term thus helping buyers avoid potentially high repair bills.
4. The lenders these dealers use report loans and payments to the credit bureaus, helping buyers establish their auto credit and, in turn, raising their credit scores.
So here’s the bottom line: at Auto Credit Express we match applicants that have experienced car credit problems with dealers that can offer them their best chances for car loan approvals.
So if you’re ready to establish your auto credit, you can begin now by filling out our online car loans application.