So you want to buy a used car, and you do not have the money for it? In that case, you will look out for financing options from dealers, banks and credit unions. But what if your credit score is very low? Even these financing options will not give you a loan and hence you won’t have money to buy the car that you desire. But that should not stop you from getting the car that you want. Even after having a low credit score you can get finance using buy here pay here financing options. Here is the process to get finance for used cars using the buy here pay here option —
- Exhaust all other options – before trying out the buy here pay here option you must consider other financing options that are available. But if your credit score is very low and you are not getting finance from any other sources then you must consider this high-interest rate option. These institutes work with people having a bad credit score just because they can make a huge profit on the interest rates. You can try out taking a loan in the name of any friend or relative who has a good credit score.
- Check if the dealer reports to credit bureaus – most of the BHPH financers do not report to credit bureaus. If they do not report then it will not add to your credit score while you pay the loan. This is bad for future loans too. Make sure to choose a financer who reports to credit bureaus.
- Research the car properly – if a BHPH is selling a car, he will not repair or inspect it before selling it to you. And hence the car might have mechanical issues too that you might not know before buying. In that case, you must be extra careful. You should not buy a car which has been in an accident or has a red flag. Get the car inspected by a reputable mechanic and inspect it properly.
- Negotiate – it is important to negotiate before finalizing the deal. Most of the dealers negotiate and it is important to finalize a good deal with the dealer. Make a high downpayment and then take a loan only for the amount that you do not have.
- Make timely payments – make payments on time to avoid increment in interest. Also, this is a chance to improve your credit score and you must make the most of it.
These are some of the means to get finance for used cars in National City. But this must be the last option to look out for.