Poor Credit Auto Financing Options in Kansas City

July 29th, 2019 by

Poor credit is not something to be ashamed of. Navigating the credit system can be tough, especially with its seemingly ambiguous numbers. With the U.S. credit system, credit scores are given out on a continuum of 850 (being the highest) to 300 (being the lowest). With those numbers, being a scale of 550 points, you’d expect the middle of the field to be 525. So when people find themselves getting “fair” credit scores while they are in the lower 600s or upper 500s, it can be very confusing. Poor credit starts at a 579 credit score. At least 33% of Americans have a credit score lower than 601, which indicates a problem that is bigger than just individual flaws.While you shouldn’t have to feel bad about your credit score, there’s no denying that having a credit score that is lower than even 650 can make getting credit cards and alternate financing a big issue. If you need a car and can’t afford one outright, this can be an even bigger issue. Fortunately, for those with credit issues, help can come in the form of auto financing options from buy here pay here dealerships like Auto Now of 79th and Wornall. Here’s how the process works.

Understand The Car Buying Process is Different

The first thing to understand is that the car buying process at a buy here pay here lot looks a little different than your typical car buying process. Instead of going to the lot or turning to the website to search for a car you might like, you should first start with research on potential vehicles that would work well for your lifestyle. Instead of focusing on one single type of car, you should focus on researching more than one car that you might like. Used car lots have a great selection, but they often won’t have precisely the vehicle that you want. Being prepared for that reality will make the process that much smoother for you. Also, note that you will not be able to pick out the exact car that you want at a buy here pay here lot before filling out an application through the buy here pay here lot. This is because you will be offered a finance amount based upon your application. If the car that you have your heart set on doesn’t fit within that category, you’ll have to start the whole car search process over again and you will likely find yourself feeling disappointed. Buy here pay here lots like Auto Now of 79th and Wornall in Kansas City want you to feel supported and confident throughout the process, so they encourage researching generic brands over picking out specific cars on the lot.

Understand The Buying/Application Restrictions

As we said in the last section, you might not get the funding for every car available on the lot, so it is essential to apply for funding before you get your heart set on a vehicle at a buy here pay here lot. To apply for in-house financing, you don’t need to have a perfect credit score. All buy here pay here dealerships will have different financial standards you must meet to be approved for funding. At Auto Now of 79th and Wornall, those include:

  • Being at least 18 years of age. We, unfortunately, cannot finance to anyone younger than that.
  • Having a valid driver’s license. It is crucial that the person applying for the car can drive the vehicle. This lets us know that they will be the primary driver and therefore, the one responsible for taking care of the car until it is paid off in full.
  • Having a total monthly income of $1200 after taxes. We will also ask you about your other monthly financial obligations as a way to better understand exactly how we can help you. Your overall financial health is as much of a concern for us as the purchase of a car from our lot is.

Get Knowledgeable with the Help of an Agent

Once you are approved for funding, come up with a list of questions you have about the business and the process of purchasing a used car through a buy here pay here lot. You will have to work with an agent to discuss your funding options, anyway, so it is always best to understand the process from start to finish if you can.

Understand the Repayment Process

Another way that buy here pay here car financing differs from new car financing is that it typically takes less time. Not only are you paying less for a car that is as reliable as a new car, but you are also paying more over a shorter period, which means you pay less in interest over time.

Other Ways You Can Finance A Car Payment in Kansas City With Credit Issues

Is the idea of purchasing from a buy here pay here lot still not clicking with you? Here are some other things to consider in terms of financial health.

  • Shop around for the best interest rate. Sometimes, banks and other creditors will lend to you despite your credit history, but often that comes with a price. Find out your credit score, and rather than applying for a loan at different locations, use their online tools to help you understand what your interest rates might look like based on your credit score. (Most traditional lenders, like Discover, Chase, Etc. have online calculators that help you determine what your interest rate would look like for a loan). Once you have a list of different rates, pick the best one, and apply for a loan there.
  • Work on rebuilding your credit. Sometimes, a waiting period is your best bet for applying for financing. If you have severe credit issues and can afford to go without a car for a few months, work hard on paying off debts and improving your credit so that banks will consider you for low-interest loans in the future. Additionally, remember that buy here pay here lots like 79th and Wornall can help you rebuild your credit while also funding your next car opportunity.
  • Consider a loan from a trusted family or friend. Sometimes, it’s possible to receive funding from relatives and friends for low or no interest. Usually, your repayment plans with these people are a little bit more flexible. At the very least, borrowing from friends and family can get you enough for a down payment on a reliable used car from a buy here pay here lot.

Auto Now on 79th and Wornall in Kansas City has all your car financing needs in one place. For more information, visit our website.