In-house car financing dealerships, also known as buy here pay here (BHPH) dealers, are spread out all over Los Angeles. They typically offer auto loans without running credit checks, which makes it easier for consumers with bad credit to get approved. What does it take to get an in-house car finance loan near Los Angeles? Keep reading to find out.
Buy Here Pay Here Qualifications
In-house car finance dealerships in Los Angeles may not run credit checks, so it doesn’t matter what’s on your credit reports. In order to get approved for an in-house auto loan, you need to meet the basic income and down payment requirements.
These are set by the dealer, so what one asks for won't be the same as another. To get an idea, though, subprime lenders generally require a minimum income of $1,500 to $2,000 a month before taxes. Many BHPH dealerships have similar income requirements.
You're also typically required to make a down payment if you want to finance a vehicle through a buy here pay here lot. How much you need varies by dealer, and often depends on the cost of the car you choose. You can use cash, trade-in equity, or a combination of both to make the down payment.
Buy Here Pay Here Lending Laws
Since in-house car finance dealerships are also the lenders, you should be aware of what your rights are with a buy here pay here dealer and what they can and can’t do.
These dealerships must abide to the Truth in Lending Act, and the following must be included in a written contract if you decide to finance with them under Regulation Z:
- The total amount being financed.
- The price of the vehicle.
- A disclosure stating that the lender has retained all or a portion of the amounts charged to you.
Make sure all paperwork is complete with this information, and read over everything twice to ensure everything is accurate. If anything is missing or documented incorrectly, you need to have it corrected, or you may even want to walk away from the deal.
Need Help Looking for a Dealership?
BHPH dealers can be a great alternative to bad credit auto financing, but finding the right one isn’t always easy, especially if you have to drive all over Los Angeles.
The good news is you don’t even have to leave your home to find the right dealership, we can do that for you. At Auto Credit Express, we help car buyers around Los Angeles get the financing they need by connecting them to the right dealer for them.
Getting started is easy. Just fill out our free and no-obligation auto loan request form, and we’ll get right to work trying to find the right dealership in your area for you.