Understanding Used Car Financing in Independence

July 29th, 2019 by

Used car financing is tough because it’s not advertised like or talked about as much as new car financing. Big car companies leverage platforms like television ads to spark your attention and grab you. However, small companies like buy here pay here dealerships don’t always have the tools to advertise during prime time like nationwide car companies do. The result of not having as significant a presence in everyday life as new car ads is that a lot of misinformation is spread regarding buy here pay here dealerships.

Used car financing is a straightforward concept. It only requires a little explanation in exchange for great benefits. Let Auto Now in Independence, Missouri, run through the process of financing a used car so you can see if working with a buy here pay here dealership might be right for you.

Applying Online

Most buy here pay here dealerships have online applications. These applications ask you basic information about your spending habits and your income. Additionally, they might ask for proof of income (like W2s, direct deposit slips, or tax return information) and references. Although each buy here pay here dealership is different, most will not require you to run a credit check. They will likely still have approval terms, however. The conditions at Auto Now in Independence include meeting age, income, and licensure requirements.

How Credit Approval and Income Verification Are Different

You might be reading this wondering how income verification is any different than credit approval. Credit approval requires making an inquiry to credit agencies about your credit score. This process usually takes a day or two and is extremely invasive – showing your payment records, number of existing loans, and how many previous credit checks you have had in the past seven years. Although this is meant to show your overall trustworthiness when it comes to your ability to repay a loan, it often neglects to take into account student loans, your successful payment history, and other personal accounts. In other words – it doesn’t show that you can’t pay back a loan, it just indicates certain things about your credit accounts.

Income verification looks at how much you make each month and compares it with your monthly costs, and it is the method that most buy here pay here dealerships use to determine lending amounts. This not only gives buy here pay here dealerships a better idea of how much you can afford to pay each month, but it also helps you understand, as well.

How is Buying a Buy Here Pay Here Car Different?

Buy here pay here car shopping is a little different than purchasing a new car and even different than buying a vehicle from a private seller. First, you do not have the full amount of the car upfront to purchase it, nor do you have to seek outside funding to buy the car. These establishments will work with you to provide a loan without you having to go to a bank and achieve the amount from a traditional loan. The payoff time is also a lot shorter than typical new car loans, which can span as many as fifteen years.

Finally, one thing to recognize with buy here pay here lots is that the method of purchase will be much different than new car purchase or purchase from a private seller. Rather than picking out the exact car you want beforehand, you will apply for financing first. Then, a verified and knowledgeable salesperson will help you make a reliable and affordable choice from the cars on the lots. In almost all instances, people drive away with a vehicle they are genuinely passionate about. However, for those who aren’t sold on their first visit, it is always possible to hold out for a car you like without having to reapply for financing.

Why Buy Used Cars in Independence?

Everyone has their reasons for buying used, but here are some of the biggest reasons we hear about from our Independence, Missouri customers.

  • Keep it Local. It’s hard to know where your money goes when you give it to big car companies. Additionally, loans from national and global banking industries also don’t contribute to the local economy. Auto Now is a proud contributor to the local community, so you can know that your money stays local and is well-invested.
    Save Money on Interest Rates. New car loans allow their borrowers lower payments. However, these payments stretch out the repayment period, which ultimately tacks onto the total interest paid. Escape steep interest rates by buying reliable used cars, like the ones sold at Auto Now in Independence, Missouri.
  • Spend Less Time Applying for Financing. Applying for bank loans is genuinely exhausting. It requires comparisons to other banks, multiple credit checks, and usually more than one visit to a local branch. Additionally, there’s no guarantee that you will be offered financing – it’s all dependent upon your credit score. The application process at Auto Now Independence is streamlined, meaning you spend less time applying and more time driving your car.
  • Rebuild Your Credit. If credit issues are preventing you from getting a car from other lenders, financing through a buy here pay here dealership can actually help you rebuild your credit. Each on-time payment gets reported to major credit bureaus, and each on-time payment boosts your overall credit score. Additionally, you spend less time paying off your loan, which increases your financial savviness in the eyes of the credit industry.
  • Get Closer to Owning Your Car Outright. Don’t wait to own your car. Spend the least time paying back auto financing by buying used through a buy here pay here dealership. Once the loan is paid off, the car is yours (usually in as little as a few years)!

Now that you understand the used car financing stop on by Auto Now of Independence. We are located on 10500 U.S. Rte. 24, our lot has one of the biggest selections of used cars in the greater Independence and Kansas City area. For more information, call us at (816) 833-6900 or visit our website for more details.