If you need a car loan in Los Angeles but you’ve already been turned down by the dealerships you’ve visited, you may think all hope is lost. Have you tried a buy here pay here (BHPH) dealer? You may want to because these dealerships do things a little bit differently than traditional and special finance dealers.
Why Buy Here Pay Here Dealerships Are Different
When you have bad credit or no credit, it can be difficult to get approved for an auto loan even when you visit a special finance dealership. BHPH dealers can often help even if you’ve been turned down before, because they don’t typically base financing on your credit. In fact, many of these dealerships don’t even check your credit.
Buy here pay here dealers are found all across Los Angeles. When you go to these dealerships, they’re more concerned with your ability to afford your payments than your credit score. These dealers look at how much you make, and ask that you provide a down payment.
Subprime lenders require that you meet the minimum income requirement from a single source of taxable income. Conversely, BHPH dealerships don't care about how many jobs or sources of income you have – they're only concerned that you earn enough to cover your car payment.
The reason buy here pay here dealers can help where other lenders can’t is that they’re both the dealership and the lender. This makes it an easy, one-stop shopping experience to pick out your vehicle and get financed all at once.
Downfalls of Working with BHPH Dealers
Even though BHPH dealers have fewer restrictions on who they approve for an auto loan, there are some drawbacks that you need to be aware of when you’re shopping for a car in the City of Angels.
First, BHPH lots only sell used vehicles. Typically, this means older models with high mileage, but in a city as large as LA, you may be able to find some lots with newer used cars, or lower-mileage vehicles. Each BHPH dealership has a different stock of cars, so you may have to search for one that meets your needs.
Another issue you might find when working with a BHPH dealer is that payments are generally arranged around your pay schedule, which means you may need to make a payment every week or two.
Often, these dealerships ask that you make payments in person, but in today’s digital era, many BHPH dealers are changing this model, and you may be able to make your payments online. However, payment methods, like many factors at BHPH lots, vary by dealership.
Perhaps the biggest challenges you’re typically going to find at buy here pay here dealers are high interest rates and larger down payment requirements. Because these dealerships usually work with borrowers regardless of their credit situations, they provide auto financing at higher interest rates.
Finding a Dealership to Work with in Los Angeles
Despite the downfalls, a BHPH dealer can be a good place to start if you’re having trouble getting the car loan you need. However, if you’ve only visited traditional dealerships that don’t specialize in working with bad credit borrowers, you may be surprised by the options that are still available to you for an auto loan.
Here at Auto Credit Express, we work with a nationwide network of special finance dealers that have bad credit lending resources. Our network includes a large pool of dealerships all across LA and California, and we can match you with one near you.
To see how one of our dealers could help you, fill out our fast, free, and easy car loan request form to get started right now.