Sunday, February 16, 2014

First Person: Getting a Car Loan With Bad Credit

When I sold cars, I did so in a city that has some of the worst per capita credit scores in the country. I saw some of the most challenged credit you can possibly imagine during my tenure, but with a little tweaking and help, I was able to find hundreds of challenged credit customers a nice set of wheels -- even in spite of their poor payment histories.
Now, as I counsel people about their budgets, I can give some insider advice on how to get a car loan with bad credit, and how to make it a one-time affair. Although, my first bit of advice is to save up and buy a "beater" in cash, not all of my clients are receptive to that thought.
So what about clients who are hell bent on financing a car even with bad credit? Getting a car with bad credit requires only six simple steps, and here they are.
Get Your Credit Report (And Know What it Says)
I tell my clients to go to and get (truly) free copies of their credit reports from all three bureaus. If they are so inclined, they can also purchase their score alongside the reports for round about $8.00 with each bureau. However, I advise doing what I do and visiting CreditKarma for your free Transunion and Vantage scores.
It's been my experience that most car dealerships will work with you if you have a credit score over 600. If this is you, skip to step six. If not, it's time to move on to step two.
If you have a relative or friend who has excellent credit, ask them to cosign on your loan. In my dealership, customers who brought in solid cosigners drove off in no time flat. However, if you don't have someone willing to risk their credit on your auto loan, it's time to move on to step three.
Find Good, Bad Credit Dealers
When dissecting car dealers who are a good fit for my clients, each cash is relative. I tell my clients to look for dealerships who specialize in helping folks with bad credit get a new ride, but also to look for dealers who advertise being able to work with circumstances similar to theirs.
For instance, if a client has a foreclosure, debt that is collection or a recent repossession I tell them to seek out a dealer who advertises they are able to work with credit problems like that, and contact that dealership via email before visiting the lot. As an old car dog, we knew that once we got someone on the lot, we had an 80 percent chance of selling them a car -- even if they couldn't afford it. Thanks to this insider knowledge, I tell my clients to ask for financing details ahead of time.
I help many of my clients write an email and in that email we ask about the average down payment and bad credit interest rates (knowing it's going to be high), specifying that we are only interested in the worst-case scenario details. If it is a "buy here, pay here" lot, we ask what the payment terms are. I want to make sure that my clients can fit the payment requirements into your budget before letting the dealership pull credit, and definitely before they commit to going to the lot.
Budget Correctly for Your Payment
Once we have some numbers, we sit down and see if that astronomical payment will fit easily into my client's budget. A mistake I saw many of my customers make was overstretching on the amount of car they could afford, because they were overly focused on payments, not on the bigger picture. When you are buying a car with damaged credit on your own, there really isn't any getting around getting fleeced on the interest rate. This means you are paying a ridiculous amount of money on an asset that only loses value over time. Instead of making the mistake I saw far too many clients of mine make, my advice is to finance a less expensive car that will get you from one place to another, safely, for a couple of years, and never finance anything longer than 36 months.
While writing the payment specifics into clients budgets, I tell them to account for changes to their car insurance rate as well -- another thing many of my customers overlooked. If they care afford the insurance, car payment and any necessary maintenance with money each month to spare each month, then it's a decent buy in my book.
Get Your Ride
Since my clients today do most of your preliminary work and financing preparations online ahead of time, finalizing the purchase is easy. The bad credit clients I had who shopped online ahead of time merely had to go into the dealership, test drive a few cars in their price range and finalize paperwork, getting them in and out of the dealership in less than three hours.
Extra hint: Before heading down to the dealership, however, I advise asking your sales representative exactly what documents you need in order to clinch the deal. Trust me, it helps make the process as smooth and seamless as possible.
Keep Fixing Your Credit
As I counsel people on their budgets now (especially those with bad credit auto loans), I ask them to make a commitment to making this bad credit car loan their last.
I tell my clients to start chipping away at their disparaging debt with the money they didn't apply to a horrendous car payment. For most of them, their credit rebounds to far better levels in as little as two years. At which point, those clients can refinance their bad credit auto loan with 12 months left on the note, pay it off soon after that (by making the same higher payment they were already used to) and never have to get a bad credit car loan again.
Getting a bad credit car loan isn't impossible, but as a money pro, it's not something I would recommend doing more than one time in a person's life. Live and learn and then live with good credit. Trust me, it makes life easier -- and more affordable to boot.
*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

Saturday, February 15, 2014

What To Expect from Buy Here Pay Here Dealers By Keith Griffin

If you're interested in getting a loan from a Buy-Here, Pay-Here dealer for your next used car, let me explain what you can expect.
Let me start off by explaining what a Buy-Here, Pay-Here (or BHPH) dealer is. It is a dealer who sells you the used car and then handles the financing. The loan comes directly from the dealer, typically underwritten by a financing company. BHPH dealers typically specialize in older used cars (probably at least 10 years old) with high mileage for clients with bad credit.
Their names are typically what the BHPH dealer is all about. You will have to return there to pay your loan, sometimes as frequently as every week. A lot of BHPH dealers will not accept loan payment by mail. They want cash or money orders because people with bad credit usually can't be trusted to pay by check and those folks are fond of saying the check is in the mail.
Before using a Buy Here Pay Here dealer, apply for your own auto financing either through a bank, local credit union or online financing institution like Capital One. Don't assume automatically because of some past credit blips that you are not going to be able to get financing. You might be pleasantly surprised. The subprime lending market has seen some signs of life in the first half of 2012.
OK, so now the bad news has come and you are denied a loan. Now is the time to consider going to a BHPH dealer.
Select a dealer who reports your payment history to credit reporting bureaus. Not all are going to do this because, frankly, they're not in the business of improving credit scores. They don't make money from people with good credit.
Your choice of cars is going to be limited to what is on the lot. You will have a very limited selection at a BHPH dealership. You rarely get the car you want. You get the car you can afford. Granted, if you are using a BHPH dealer you don't have lots of money lying around, but make sure you get the used car inspected before signing on the dotted line.
The tricky thing is the dealer determines what your payments are going to be. Financing is going to discussed upfront. The dealer wants to know what you're good for before letting you know what cars you can buy. You don't pick out a car and then discuss financing as you would at a regular used car dealership.
Expect to pay much higher interest rates than you would anywhere else. The California Legislature is currently considering a bill that would cap loans at 17.25%. That's almost as high as a credit card. That cap suggests people are paying much higher than that for their buy-here, pay-here used car financing.
Your dealer will always know where you are because the used car you are buying from a Buy-Here, Pay-Here dealer is going to have some form of electronic tracking device. Those are installed so the repo folks know where to go when it is time to repossess your used car for non-payment of loans. As the old saying goes, you can run but you can't hide from a Buy-Here, Pay-Here dealer.
Some BHPH dealers even go so far as to install ignition shutdown technology in the vehicle. That stops people from high-tailing it once their loans are overdue. The dealer can stop you dead in your tracks, regardless of where you are. (California would like to see the devices to provide advance warnings to the driver to help avoid stranding them.)
Assume that these devices are going to be on any BHPH used car that you buy. That makes it important that you learn the dealership's late-payment policy. Less reputable dealerships are just interested in taking your money (especially at interest rates above 21%). They may be willing to swoop in and either repossess or disable your used car. Don't forget to ask the dealer the normal questions you would, too.
Are all buy-here, pay-here dealers bad people? Not all but they are business owners. They want to make a profit and they do serve a market that others don't want to (i.e. major dealerships, financial institutions). Where they do get a bad reputation is by zeroing in on less-educated consumers and/or use high pressure sales tactics.
The important thing to remember about a BHPH dealership is you do not have to buy your used car from one particular dealership. Walk out the door if anything about the transaction makes you uncomfortable. Better to be inconvenienced and without a car than to be ripped off and out of pocket for hundreds, if not thousands, of dollars.

Sunday, January 20, 2013




Build your credit back with us! It really doesn't matter what caused your bad credit problems: the economy, a divorce, job loss, repo, charge offs, collections, etc...

What does matter is that it is not a hopeless situation, and can help you restore your credit and purchase a reliable Car, Truck, SUV or Van. All of our vehicles undergo a rigorous mechanical inspection. Buying a used car at is a great choice as well as a smart financial move for many car buyers. Whether you live in Albany NY, Schenectady, Fort Plain, Utica, Johnstown, Gloversville, Amsterdam New York or in the Mohawk Valley, can get you approved for a car loan regardless of your credit history.

After all, what's in the past is in the past. Let's move toward your future.

Sunday, January 9, 2011

Bad Credit Auto Financing in New York.

Bad Credit Auto Financing

With poor credit, zero credit, or bankruptcy, finding the right car lender for your automobile financing can be difficult. Sadly most credit unions and banks don’t accept applicants with credit scores below 620.  Most even have minimum credit scores below which they reject applications automatically.

For many the best alternative option is finding Buy Here Pay Here car lots . Buy here pay here auto lots can  approve financing via 3rd party car lenders. Or  they lend directly to their car shoppers.  BHPH auto dealer will approve credit scores well below 600, however, most of them do perform credit inquiries the majority of the time.  A hard credit inquiry such as this for buy here pay here financing will typically decrease your credit score by five points for a six month period.  On the other hand, a car loan can increase your credit score significantly when the installments are paid in full.  Like anything, there is no free lunch.  In-house financing rates are usually more than 10% for starters.  The cars are nearly all used, without certified per-owned programs like the bigger dealers have.  You should also be wary of the dealer scams more common to smaller lots.  To avoid such predatory lending: adhere to the rule that anything which sounds too good to be true probably is.  Do you think Buy and Pay Here is right for you?  If you have have damaged credit, or none at all, then you should check out BHPH dealerships in your part of the state.  To get per-approved, why not check out this site:  Buy Here Pay Here financing or call (518)848-3078. 


Buy Here Pay Here AT call to get same day loan approval at (518) 848-3078.


Our  car lots in Gloversville, Fort Plain, Johnstown and Clifton Park, New York  provide auto financing directly to people with bad credit. These car lots are called Buy Here Pay Hereor Lease Here/ pay Here  car lots. If you live in New York State  and have bad or really bad credit chances are that a typical bank, credit union, or subprime auto finance company would not extend you a line of credit to buy a car.

Buy Here Pay Here

Our buy here pay here car lots have financing programs for nearly any credit situation; previous repossesions, bankruptcy, foreclosure, and unpaid medical bills.

To get started, complete the short form on our website ,CLICK GET APPROVED and call to make an appinment to pick up your car. Very simple, no games. Call us at (518)848-3078 and drive next week.