Are you thinking of buying a new car? Did you study the several sources available in the market for obtaining finance for your car? When you are in the car market, you will spend most of your time making sure that you obtain the best auto loan deal. It is because we turn to auto loans in order to buy a car that we want.
Are you a Credit-Challenged Person?
When you apply for an auto loan, you may have bad credit history or no credit score. A low credit score makes you a credit-challenged person.
A credit-challenged person is someone who has credit issues. It is possible that he may be denied auto loan approval from lenders, banks, and credit unions.
Is there any Option for buying a Car as a Credit-Challenged Person?
If you are a credit-challenged person, it is time to consider a BHPH dealer. BHPH stands for Buy Here Pay Here. Such dealer is considered to be a last resort for people with bad credit, but you should make it your priority when other lenders' doors are closed for you.
Such dealers offer a unique in-house financing program for people with bad credit. The car dealer acts as the auto financing company. And, the approval is guaranteed because the decisions are made by the dealer only.
Even though there is a thin line of difference between traditional dealership and BHPH dealers, the main difference lies in the shopping experience. If you opt for a traditional dealership, you have to choose a car and then go to a bank or an automobile financing company for securing the auto loan. On the other hand, a BHPH dealer can arrange the auto loan easily.
Help yourself with these Safety Measures before you approach a BHPH dealer
· If you are a credit-challenged person, your car-shopping experience may become stressful if the banks reject your loan application. So, it better to seek a BHPH dealer in order to expedite the car buying process.
· Your credit score may be better than you think it is. So, first check your credit score and then decide on the source for obtaining a loan for your car.
· If you are credit challenged, there are chances that you will be charged more for your car. So, it is important to negotiate with the BHPH dealer in order to acquire the best auto loan deal.
· In order to avoid the situation of repossession of your car, you should remain aware of the rate of interest and the monthly payments offered by the BHPH dealer.
· Select a dealer who will report your payment history to credit bureaus. It will help you in improving your credit score.
Additional Points to be noted about BHPH Dealers
· If you have an address proof and a steady income, the approval chances for your auto loan improve phenomenally.
· A BHPH dealer is subject to federal laws. So you can expect to be in safe hands.
The first thing that comes to your mind when you think of a BHPH dealer is his reputation. So the question here is: Are all BHPH dealers bad? The truth is such dealers are businessmen, who want to make profit in the car market. Not everyone will provide you with a shady deal. But, if you want to be a smart car-buyer, follow the safety measures before signing the loan contract.