Do you have a FICO score of 620 or less? Banks and finance companies base their approval decisions on your FICO score. Buy here pay here car lots don’t. They are more interested in whether you can make your payments now, rather than your track record of doing so. You will make your payments directly at the dealer, either personally, by mail, or online. Hence the name: “buy here, pay here.” These dealerships often promote their services with certain slogans:
- We Finance
- Tote The Note
- Your Job is Your Credit
- Rent to Own
- In-House Financing
Getting Approved for In-House Financing
You could go get in your car and drive all over town, looking for a buy here pay here dealer, but wouldn’t that be a waste of time and gas? There’s a better way to secure financing. We can get you approved for financing from a dealership in the area – online! The service is fast, free, and there are no obligations.
Is There a Minimum FICO Score?
Unlike a bank or finance company, these dealers seldom have minimum credit requirements. With that being said, most dealers do want to see that you earn at least $1500 per month, ideally from W2 income. That’s gross income, before taxes, not what you actually take home.
Since they place more emphasis on your income than your FICO score, these dealers often use the slogan “your job is your credit.”
Do These Dealers Require a Down Payment?
Down payments are to be expected with a buy here pay here dealer. Down payment amounts vary. It may be a predetermined amount or it may be a percentage of the vehicle’s worth, such as 10%, 20%, or more. You might want to negotiate for the smallest down payment possible. A down payment will protect you against negative equity, but those are also funds you can save for emergencies.
Making Your Payments
Have you ever had a vehicle repossessed? Not only do you lose your car and down payment, you may owe a deficiency on the loan. This is not always the case with BHPH dealers, but repossession is to be avoided nonetheless.
To avoid an issue like this, choose a vehicle with affordable monthly payments, perhaps just 5-8% of your monthly income. Always make your payments by the due date, and know your dealer’s policies when it comes to missed or late payments. In order to get approved, you may be required to accept the installation of a GPS tracking unit.