Buying a car with a credit score of 600 or less can be a legitimate challenge. Buy here pay here car lots will offer financing to just about anyone, regardless of credit. As a rule they are more concerned with your income and employment history when it comes to approvals. Rather than an off-site loan company processing payments for the financed vehicle, the dealer receives all payments. However, these dealers can be tough to find. Often, the only way to recognize them is through signs that say such things as:
- We Finance
- We Tote The Note
- Your Job is Your Credit
- Rent to Own
- In-House Financing
How to Get Approved for In-House Financing
Who wants to cruise around town, trying to find a buy here pay here dealer? We can help! We work with countless dealerships in Maryland that provide in-house financing to people with credit problems. The service is fast, free, and there are no obligations.
Is There a Minimum FICO Score?
Our dealers will often accept borrowers who have scores of 600 or less, which means credit isn’t an issue. With that being said, most dealers do have a minimum monthly income requirement: $1500. Importantly, this is your income before taxes are taken out. If you make less than $375 a week and don’t anyone to cosign, it is better to save up for a low-priced used car or truck.
Do These Dealers Require a Down Payment?
Because buy here pay here dealers work with all kinds of credit problems, they do normally require a down payment of some type. As you can imagine, borrowers with credit problems are more likely to miss payments, so dealers prefer to get as much money upfront as they can. Commonly, the down payment covers the dealer’s initial investment in the vehicle, so you may want to go with the s down payment the dealer will accept.
Planning Your Investment
The last thing you want to do is plunk down some hard-earned cash for a new vehicle, and then have it repossessed. To avoid an issue like this, choose a car with low monthly payments, perhaps just 5-8% of your monthly income.
You should also carefully go over your contract with your dealer. You need to know the rules surrounding late payments and repossession. For approval, you may be required to accept the installation of a GPS tracking unit.