You may still have car loan options if your credit score falls in the deep subprime range – which is typically defined as a FICO score of 500 and lower. You might think it’s impossible to get an auto loan with really bad credit, but it is. In fact, even if you’ve been turned down by a special finance dealership, you can still apply at a buy here pay here dealer.
What’s a Buy Here Pay Here Dealership?
A buy here pay here (BHPH) dealership is a car lot that specializes in in-house financing, which means the dealer is also the lender. These dealerships can be a great option if you’ve been turned down by a traditional or subprime lender.
Since buy here pay here dealers are also lenders, they’re usually not worried about your credit score, if you have a credit history, or where your income comes from. The biggest advantage is that these places usually don't look at your credit score, so it won't even matter if you have really bad credit.
Unlike subprime lenders, who generally require you to make a minimum income of $1,500 a month before taxes from a single job, BHPH dealerships aren’t concerned about how many jobs or sources of income you have, or whether your income is taxable.
You can typically get approved to finance a vehicle as long as you meet their minimum income requirement. You can expect a higher than average interest rate and a down payment requirement. These places typically base the money down requirement on the car you're financing, so the specifics vary.
Be aware that you may be asked to make payments on a monthly, bi-weekly, or weekly basis, depending on your pay schedule. In some cases, an in-house lender may ask you to make payments in person, but most BHPH dealers are getting better about accepting online payments. However, all this depends on the dealership you’re working with, and each one operates differently.
What Kind of Cars Do BHPH Dealers Sell?
Buy here pay here dealers only sell used vehicles. Since these dealerships are backing your loan, you’re limited to the cars on their lots. The vehicles they stock can vary widely, from lightly used late models to older cars.
When you buy a vehicle from a BHPH lot, you should have it inspected carefully, both inside and out before you buy it. These cars, like any used vehicle, are sold as is, so it’s a good idea to have a certified mechanic check it over.
If a dealer won’t let you take a car for a test drive or to a mechanic for an inspection before you buy it, then you should walk away.
Finding the Dealership For You
When you’re struggling with a really low credit score, you don’t have to give up hope for an auto loan. There are dealerships that can help you, and you may even be able to improve your credit score at the same time. If you’re ready to find a dealer to work, let Auto Credit Express help.
We work with a nationwide network of special finance dealerships, including BHPH dealers, that can help people get the car loans they need. To get connected to a dealership in your area, start the process by filling out our fast and free auto loan request form.