What Is A Buy Here Pay Here Car Lot?

Struggling with bad credit but desperately need a car? Traditional dealerships might slam the brakes on your car search, but there's another option: buy here, pay here dealerships.

Here at Terre Haute Auto (with years of experience in buy here, pay here near Terre Haute!), we understand your situation. That's why we've put together this guide to help you navigate the world of buy here, pay here car lots:

1. Low Credit? No Problem!

Buy here, pay here dealerships are lifesavers for those with little to no credit. Unlike traditional dealerships that rely on credit scores, these dealerships focus on helping people like you get the car they need. Keep in mind, they primarily offer used cars, which are generally more affordable than new ones.

2. How Do They Decide Who Qualifies?

Traditional dealerships use credit scores to determine loan eligibility. Buy here, pay here dealerships take a different approach. They consider factors like:

• **Income-to-debt ratio:** Can you afford the monthly payments?


• **Employment status:** Are you in a stable job?


• **Living situation:** Do you have a steady address?

3. Build Your Credit While You Ride

Even though buy here, pay here financing doesn't require a credit check, your payment history matters. Making on-time payments will actually help improve your credit score! Late payments, however, will hurt it. So, use this opportunity to build a positive credit history.

4. Fast and Easy Financing

One of the biggest perks of buy here, pay here dealerships is the streamlined financing process. They handle everything in-house, allowing you to get pre-approved and drive away quickly.

5. Selection Might Be Smaller

Be aware that some buy here, pay here dealerships might have a limited selection of vehicles. This is because the cars offered are typically based on your financial situation. However, with some research, you can find a dealership that caters to your needs and offers a decent variety. Here at Terre Haute Auto, we stand out from the crowd with our diverse selection!

6. Saving with Down Payments and Trade-Ins

To save money on your car and monthly payments, consider a down payment or trade-in. Buy here, pay here dealerships often encourage these options as they lower the loan amount and interest rate. Aim for a down payment of around 20% of the car's value. A trade-in can also save you money, but the amount depends on the car's condition and any trade-in incentives offered.

So, if low credit is holding you back, don't give up! Buy here, pay here dealerships can get you back on the road.