When car shopping, securing a loan can be daunting, especially if you have a less-than-ideal credit score. Traditional lenders often raise barriers that make obtaining a car loan seem impossible. Fear not, ‘Buy Here Pay Here’ (BHPH) lots may provide a beacon of hope for those wading through this difficult credit landscape.
BHPH lots are essentially dealerships that finance car loans in-house instead of using a third-party lender. This means that you purchase the vehicle and set up the loan directly at the dealership.
Unlike traditional car dealerships, BHPH lots focus more on your income and ability to repay the loan rather than your credit score. It’s their unique flexibility that makes them a viable option for those individuals grappling with bad credit.
Buy Here Pay Here lots are easy to find but not as easy to use. When looking for a bad credit car loan, you need to be prepared for the fact that lenders who offer BHPH lots will be very selective about whom they choose to work with. Because of this, it’s important that you know what to expect before you go out looking for a loan.
If you are considering getting a BHPH lot, here are some tips to help you navigate the process and get your vehicle.
Invest time in researching reputable BHPH lots. Online reviews and ratings can provide insights into other customers’ experiences, helping you make a more informed decision.
Before signing anything, ensure you understand the terms of the everyone approved car loans in Calgary, including the interest rate, monthly payment, and total cost over the course of the loan. Additionally, don’t shy away from asking about late-payment policies.
Just because your credit is not great doesn’t mean you have to settle for a vehicle that isn’t up to par. Always ask for the vehicle history report and consider getting the car inspected by an independent mechanic.
Just like any car dealership, do your best to negotiate the price. A clear idea about the car’s market value should provide a good negotiation starting point.
Ensure the BHPH dealership reports payments to the credit bureaus. This can aid in rebuilding your credit score if you make your payments on time.
Navigating ‘Buy Here Pay Here’ lots can initially seem overwhelming, especially if you have bad credit. While BHPH may offer a lifeline during tough times, it’s not the only option. Always exercise due diligence, understand the terms thoroughly, and keep up with repayments.
Image Credit: Canva.com
Our dealership has been Serving Calgary Alberta since 2013.
We specialize in used cars and always try to get the best deals for our customers.
Award-winning, family owned car dealership of pre-owned vehicles with several locations across the city. Lowest prices and the best customer service guaranteed.
Feel free to contact us and test drive one of our cars today. We value your business. Referrals are welcome and remember we pay cash for referrals.