Can You Buy A Used Car With a Poor Credit Score?

March 6th, 2020 by

A poor credit score typically rules out going to a bank for an auto loan. Nationwide banks represented in Topeka and across Missouri must work to strict guidelines their head offices have outlined. They cannot make loans to people with poor credit scores.

This can be frustrating when you go into the bank in Topeka that you’ve been dealing with for decades only to find they’ll turn you away for a modest car loan based on your credit score. You feel reduced to a number, and the speed at which you can be denied really brings home how impersonal the financial system is.

Why Should I Choose a Used Car Dealership in Topeka?

Alternative options exist. Most people with a poor credit score should be looking for a used car as opposed to a current-year model, as the amount you pay on a new model is vastly inflated when compared to the price of a vehicle that’s just a few years old. The smartest way to buy a car is to choose a used car from a used car dealership in Topeka, as you’ll avoid the depreciation hit that the first owner takes.

The vehicles you’ll find at a Buy Here Pay Here car lot in Topeka like Auto Now usually come from trade-ins at dealerships. The first owner has driven the vehicle for a few years, having purchased the car at full price when it first came out. He or she has returned to the dealership to buy the latest new car, trading in the original vehicle for a marked-down price.

Used car dealerships in Topeka purchase these used cars and sell them on at a significant discount from the original price. Smart buyers choose to get a virtually new car by buying at a used car dealership. The vehicles have all undergone a complete inspection and any small issues with the vehicles have been fixed. As far as you’re concerned, the vehicle is pretty much as good as new, with only the odometer to show that the car has already done some miles on the clock.

Some Buy Here Pay Here car dealerships in Topeka go even further to back up the vehicles on offer. Auto Now in Topeka offer a two-year/24,000-mile warranty on all vehicles sold on the lot. Like an extended warranty from the manufacturer, this covers all of the most important mechanical parts so that even if there were to be a problem, the dealership will cover the cost of the repairs. For full details of what is covered and what isn’t, check our website or get in touch.

Where Can I Get Poor Credit Car Financing in Topeka?

If you have a poor credit score, you’re best to choose a dealership that offers Buy Here Pay Here financing, in-house financing, or Pay Here Buy Here financing. These terms are virtually synonymous and they mean that the dealership handles the financing of vehicles themselves instead of outsourcing it to a bank or lending establishment.

This means that the Buy Here Pay Here car dealership is able to set its own terms as to whom it offers car loans to. This industry was born out of necessity – in the 1970s during a recession, banks stopped lending to people; people who had the means to buy a car and desperately needed to do so. Car dealerships found themselves facing a problem – how do they sell their cars to people who need them when these same people can’t get a bank loan?

The answer was to offer financing in-house and take on the risk that people wouldn’t repay their loans on time. The dealerships could still repossess the car if the loans weren’t repaid, but this additional risk and cost of recovery at first meant interest rates and down payments on in-house financing were a lot higher than the rates offered at a bank – when they were offered at all.

As the decades passed, Buy Here Pay Here dealerships became much more competitive. Consumers had access to the internet and could readily shop around for the best deals. Other players entered the market from the massive payday loan industry that had sprung up. Huge established lending authorities joined in to back up nationwide chains of in-house financing auto dealers. And Buy Here Pay Here dealerships became better at managing risk and lowered operating costs. This has all led to Buy Here Pay Here used car dealerships becoming some of the most competitive offerings on the market.

As Buy Here Pay Here dealerships like Auto Now in Topeka can set their own lending terms, they are able to lend to people with poor credit scores. Indeed, Auto Now doesn’t check your credit score at all, instead basing lending criteria mainly on your take-home wage.

If you take home over $1,200 a month after taxes, you’re likely to be able to get a car loan at Auto Now.

Auto Now for Bad Credit Car Financing

Since 1996, Auto Now has been the choice for many Missouri and Kansas residents for their car financing. From our humble beginnings, we have grown to become one of the largest Buy Here Pay Here dealership chains in Missouri and Kansas, with locations in Topeka, Independence, Olathe, Belton, Kansas City, and Wichita.

We have hundreds of vehicles at each location. Take a look through these on our website to get an idea of what you could be driving away tomorrow. Remember, even if you have a poor credit score you’ll be welcome at Auto Now. Browse through reviews from the thousands of people we’ve helped into new cars and you’ll see we’re the best in the business.

What more can you ask for? One of the largest selections of vehicles in the state, all available with a low down payment, and accessible to everyone who’s earning $1,200 a month or more. Get in touch today, and we’ll discuss your options and get you into a car you’ll love.