Think You Can’t Get Financing On a Used Car? Yes, You Can!

The credit system in the United States can be exhausting, especially for those who have less than excellent credit. It only calculates things like credit cards payments and balances, loan payments and balances, and mortgage activity. And while it derives all the good aspects of these activities, it also calculates the bad. Sometimes the bad isn’t even all that bad – things like high balances on credit cards often just indicate that you needed to use more of your credit limit than you had previously thought you would. Those high balances have a more significant impact on your overall credit score than consistent on-time payments that you make to them.

What’s worse is that many loopholes are available to people with poor credit that they aren’t told about. If you rent an apartment, pay electricity or internet, or pay monthly on an insurance policy these things should also count toward your credit. Unfortunately, these companies do report to credit agencies if you make even the slightest late payment one time. You can ask for your landlord or insurance agency to report your on-time payments to credit agencies, but that brings up another issue – it can take anywhere from three to six months for a credit score to accurately report your creditworthiness. This amount of time just doesn’t fit in with regular schedules.

Then there’s the issue of getting financing on big purchases like cars. According to a recent study, the majority of Americans, with both good credit and credit issues, cannot afford a new car. This means that many look to used car dealerships for their subsequent vehicle purchases. Unfortunately for people with credit issues, many used car dealerships require outside financing, such as bank loans or lines of credit. If you have less than excellent credit, this seems like a death sentence when it comes to purchasing a car. Fortunately, buy here pay here dealerships like Auto Now in Belton offer financing on used cars for people regardless of their credit history.

Can You Trust Buy Here Pay Here Dealerships?

A common misconception about buy here pay here dealerships is that they are only looking to make a quick buck and don’t care about the needs and wants of the car customer. This is especially true among customers who have had a bad experience based on their credit. Some people want to take advantage of those who need cars, and while this might be true of some car dealerships, there is always one rotten egg in among the good ones. To find a buy here pay here dealership you can trust, here are a few things you can look for.

The dealership has a wide selection of cars and prices. The quality of a dealership’s inventory can make a difference in terms of the trustworthiness of that dealership. When a dealership has cars from all brands, a range of years, and at a variety of prices you know that they are not just trying to sell all the vehicles on their lot – they are trying to provide reasonable transportation to a range of potential customers.

The dealership has a warranty on their cars. Good dealerships, like Auto Now in Belton, have warranties that tell you they care about the vehicles they are selling. All Auto Now locations have a 24-month warranty with a low deductible which makes you feel confident that even if you have a repair in the first two years of owning a car, it won’t cost you your entire paycheck.The dealership wants you to understand the whole process and puts an emphasis on clear communication. Ever been to a store website that is hard to read and full of jargon? Or is there a time you can recall having worked with a salesperson who sugar-coated everything about a product they were trying to sell you? A good buy here pay here dealership will provide clear communication about the entire process of purchase – from the time you visit their website to the time you spend working with a car salesperson.

How Do I Apply for Used Car Financing?

To apply for used car financing, you will fill out an application that asks you a little about your financial status, including questions about your income and your monthly bills. Usually, before you can secure financing on a particular car, you must meet with a salesperson at the buy here pay here dealership. Once the salesperson fully understands your financial situation, they will be able to help you choose a car on the lot based on your preferences and the amount they are willing to lend you. Instead of basing this number off of credit, which does not show your full financial story, they rely on you to be clear about what you can afford.

What Requirements Are There for Obtaining a Used Car Loan?

On the lot financing is a great car buying alternative for those with credit issues. However, it is not available to everyone who is in the market for a new car. Each buy here pay here lot has their own rules and regulations. To get a used car loan at Auto Now, you must:

• Be 18 years of age or older.
• Make $1200 monthly after taxes are taken out of your paycheck. Usually, this requires a full-time job at minimum wage or a part-time job at a higher salary.
• Have a valid driver’s license so that you can drive the car you purchase.

Other than that, you don’t need to worry about financing on a used car. If you meet these requirements, you will be able to obtain on the lot financing and drive away with a great car.

Still not convinced that your credit history will allow you to get a new car? Let us convince you otherwise. If you live in Belton or the Kansas City greater metro area, stop by Auto Now in Belton to meet with a financial specialist about making your next big purchase. All you’ll need to bring is photo ID and proof of income, and we’ll be able to work out a payment plan and vehicle option for you. Call us at (816) 331-2100 to schedule an appointment, or visit our website to apply online before you come in.