Just because you have bad credit or no credit doesn't mean you can't qualify for an auto loan. There are no credit check car dealers in Los Angeles that don't care about what is or isn't on your credit reports. Keep reading to learn more about the pros and cons of getting an auto loan through these types of dealerships.
Pros of No Credit Check Car Dealers
No credit check dealers, also called buy here pay here dealerships, often don’t check your credit. This is the biggest advantage to financing through one of these dealers in Los Angeles, since they don’t particularly care about what’s listed on your credit reports.
Two other pros of no credit check dealerships are:
- One-stop shopping – These dealers don't use third-party lenders, they finance the cars on their lot themselves. You pick out a vehicle and sign the finance contract all in the same place, which is convenient.
- Qualify with income – Because your credit isn’t a factor in your approval (unless stated otherwise), these dealerships look at your income to qualify you. As long as you meet their income requirements and make a down payment, you shouldn’t have an issue getting approved.
Auto Credit Express Tip: Make sure you budget for an auto loan ahead of time, and include additional costs of ownership such as maintenance, repairs, fuel, and insurance.
Cons of No Credit Check Car Dealers
These no credit check dealers can sound too good to be true. You can get approved for car financing with bad credit or no credit, but you also need to consider the cons of in-house financing dealerships.
Some disadvantages to getting an auto loan through a no credit check car dealer include:
- May not be able to build credit – If they're not checking your credit, they may not be reporting your loan or payments to the credit bureaus. If this is the case, this type of loan won't help you improve your credit score. Ask the dealership about their reporting practices ahead of time if credit building is a priority for you.
- Limited vehicle selection – The type of car you can buy depends on what’s on the dealer’s lot, and they only carry used vehicles. Make sure you carefully check out any car you're considering, test drive it, and get a vehicle history report before agreeing to anything. You can also have it inspected by a certified mechanic before you sign a contract.
- Higher interest rates – No credit check means your interest rate is going to be higher than average at these dealerships. You can expect an interest rate in the double digits in many cases.
- Larger down payment – Not only is your income used for approval, but so is a down payment. The down payment requirement at no credit check car dealers usually depends on the cost of the vehicle you choose, but it's often larger than average.
The Bottom Line
No credit check car dealerships are great if you just need a vehicle to get by, but not if you’re looking to build or improve your credit score. If you need help locating a dealer that can get you financed and help you build credit in Los Angeles, we have the solution.
Auto Credit Express works with one of the nation's largest networks of special finance car dealerships. We can connect you to one near you, whether you live in Los Angeles, another part of California, or anywhere else in the country.
All you have to do to get started is fill out our online auto loan request form. Our service is free and our process is fast, so the sooner you apply, the sooner you could be driving off in your next vehicle.