If you live in Seattle and need a bad credit auto loan, you have a few options for where you can go. One of them is a buy here pay here (BHPH) dealership. These dealers offer loans in-house, which means they’re both lenders and dealerships – making it easier and faster to sign up and drive away with a car. However, there are some important drawbacks you need to be aware of before you decide a BHPH dealer is the right choice for you.
Buy Here Pay Here Pros and Cons
As mentioned, BHPH dealerships are also lenders. This one-stop shop makes it easier to get the financing and vehicle you need, but that’s not all these dealers can offer you.
Let’s check out two other advantages of BHPH dealerships:
- No credit check – This is a big one. For the most part, buy here pay here dealers don't look at your credit. Instead, your approval is based on your income. As long as you have the cash and can afford the payment, you shouldn’t have an issue getting approved, regardless of your credit.
- Payment schedule – BHPH dealerships tend to offer a wider range of payment schedules. Depending on your situation and their programs, you may be asked to make monthly, bi-weekly, or even weekly payments. Additionally, these dealers used to only accept in-person payments, which is where their name comes from. However, most of them now take online payments in this day and age.
There are some cons you need to be aware of, as BHPH dealerships aren’t always the best option for bad credit car buyers in Seattle:
- Can’t improve your credit score – Because most don’t run credit checks, it also means they may not report your on-time payments to the credit bureaus, although some still do. This means your loan won't help you improve your credit score. Ask about their reporting practices ahead of time if you're trying to build credit.
- Need a down payment – BHPH dealers usually ask for a down payment. How much money down is required typically depends on the cost of the vehicle you're financing.
- Car selection is limited – BHPH dealerships only sell used vehicles. While you can find gently used cars on their lots, many also sell older models too. Don’t be surprised if you find vehicles that are around 10 years old and/or have over 100,000 miles on their odometers.
Another Financing Option in Seattle
If you’re on the fence about a buy here pay here dealer in Seattle, you might want to consider financing a car with a subprime lender. These lenders work with special finance dealerships, and know how to handle unique credit situations. Similar to BHPH dealers, they require proof of income and a down payment, but they look at your credit.
It may be more of a challenge to get approved through a subprime lender because of the credit check, but you may be able to improve your approval odds. To do this, you could include a cosigner or co-borrower, or make a larger down payment than the minimum required – which is usually at least $1,000 or 10% of the vehicle’s selling price.
Find a Dealership in Seattle
Just because your credit is tarnished doesn’t mean you have to settle for a clunker at any old dealership. You have options available, and you should look into them. If you don’t know where to start, we want to help you find a Seattle dealer that works with bad credit.
Auto Credit Express works with dealerships all over Seattle, and the rest of the country, that specialize in getting people financed who have bad credit. Simply complete our auto loan request form, and we'll get right to work matching you with a local dealer.