Problems getting financed due to repossession, bankruptcy, or other credit issues? Lenders base their approval decisions on your FICO score. Buy here pay here dealers don’t. Generally they focus on your income and history of employment when it comes to approvals. Instead of a bank or lender accepting payments for the financed vehicle, the dealer receives all payments. Unfortunately, these dealers can be difficult to find. Often, the only way to identify them is through ads that say things like: we tote the note, we finance, your job is your credit, or rent to own.
How to Get Approved for In-House Financing
You could jump in your car and cruise all over town, trying to find a buy here pay here dealership, but that would be a waste of time and money. That’s where we come in. We have relationships with dealers who are willing to work with you, even with bankruptcy, default, and foreclosure, and they’re willing to approve you for financing – online! We get 90% of our qualified clients approved, and there are zero obligations.
Unlike a bank or credit union, these dealers seldom have credit minimums. Having said that, you will need a minimum income of $1500 a month or $375 a week. This is pre-tax income, not take-home pay. If you don’t earn enough, but you have a spouse or parent who earns $1500 monthly and is willing to cosign, make sure to indicate this on your application.
The reason for this income requirement? Dealers simply want to know you can afford the payments.
Do These Dealers Require a Down Payment?
This is one of the downsides to buy here pay here financing: down payments tend to be required. It’s just a fact: buyers with bad credit are more likely to have missed or late payments. A down payment mitigates the dealer’s losses if the vehicle has to be repossessed. You might want to negotiate for the lowest down payment possible. A down payment does protect you against negative equity, but those are also funds that you could save in an emergency fund.
Planning Your Purchase
Avoiding repossession starts before you ever finance a vehicle. The lot will have plenty of vehicles that are too expensive. You need to opt for a sensible vehicle with inexpensive payments. Also, all of the policies will be enumerated in your contract. Be sure to read through them with the dealer. Some dealers install GPS trackers or ignition interlocks to assist in the recovery process.