If you are reading this, the chances are good that you have heard about “buy here pay here” financing. For many drivers, the opportunity to finance a car purchase directly through a dealer is hugely valuable. Understanding the details behind “buy here pay here” can help ensure that you are prepared when it comes time to buy your next vehicle.
First, it’s important to realize that a BHPH car deal doesn’t mean that you won’t be required to meet certain eligibility requirements. Although it is true that the BHPH model of car financing is more flexible than traditional bank lending, car dealers will still make sure that you are capable of paying for the car you wish to buy. Often, this process includes income verification as well as a credit check.
Just like if you were attempting to buy a home, the size of the down payment you are required to pay on your car will reflect the type of “risk” you represent to the auto dealer. For example, if you have a relatively high credit score, a co-signer, or a large monthly income, you may be able to avoid paying a large down payment. At Owings Auto, some qualified buyers may be able to purchase their vehicle with as little as $99 down! That being said, these specific terms will be determined at the time of your BHPH financing application.
Generally speaking, prospective buyers must meet two fixed requirements in order to be eligible for any level of BHPH through Owings Auto. This includes presenting evidence of a minimum of $1,500 net income, as well as proof of residence. Without this information, your financing application will not be validated. You may have heard of $500 down car lots, and it is entirely possible that you could purchase your car with a $500 down payment! However, this will be determined at the time of your application.
If your credit score could use some work and you aren’t in a crunch to purchase your new vehicle, you may try to improve your score over the short-term before applying for BHPH financing. You may be surprised how much of a difference this can make when it comes time to make your down payment!
If you have any questions, feel free to stop by and visit the team at Owings Auto! Our qualified sales experts can help you understand the BHPH process and find the best path forward to owning the vehicle of your dreams.