How Hard Is It To Get An Auto Loan If You Have Poor Credit?

In today’s uncertain financial times, unexpected expenses can wreak havoc with personal finances. Many people who live from paycheck to paycheck walk a fine line every month trying to keep ahead of the bills while hoping and praying that they can avoid a disaster of some type – at least until they get their next raise. But the truth is, for many people, an unexpected large home repair bill, medical bill, or business bankruptcy can derail them financially. These setbacks can lead to negative financial statements and a damaged credit score that’s hard to recover from.

If this has happened to you, you’re probably very familiar with the negative emotions that result from this situation. Shame, embarrassment, and frustration go hand in hand with financial destruction. You might have also received the “helpful” advice of friends and relatives who’ve never been in your situation. Naysayers may tell you that you’ll never be able to rebuild your credit or that it’ll be years before anyone trusts you enough to loan you money again.

So…do you listen to their discouraging words?

The answer is no. Don’t listen to your friends and neighbors. They may mean well, but if they’ve never been in your situation, they shouldn’t be viewed as experts, right? There are ways to quickly rebuild your credit after a financial setback. It’s not the end of the world. A good place to start is with obtaining an auto loan.

How Hard Is It To Get An Auto Loan With Poor Credit?

The good news is that it’s actually not as hard as you might think, provided you know where to look. A great place to start is with a specialized bad credit used car dealership like AutoMax.

bad credit car dealership

AutoMax is a reputable buy here pay here car dealership in North Carolina.  They specialize in providing on-the-lot car financing options to help customers purchase reliable used vehicles. AutoMax offers this financing option to everyone, but they specialize in helping people with poor credit. Since they opened in 1989, AutoMax has been dedicated to helping individuals with bad credit or no credit in obtaining dependable transportation without any hassle.

Why Use On The Lot Financing Instead Of Traditional Financing?

Buying from a buy here pay here car dealership like AutoMax saves you both time and money. On the lot car financing means that the loan is made to you at the dealership. You don’t have to go through a traditional bank, and you don’t have to run around town trying to find someone who will provide you a loan. Instead, you qualify for the loan on-site, choose the car you want, and take care of all the paperwork right there at the dealership. It’s a quick, easy, and hassle-free process.

You also save money by avoiding extra charges that are typically found at a traditional car dealership. Fees like destination charges and prepayment penalties often don’t exist at a buy here pay here car dealership.

Buy Here Pay Here Car Dealerships Are Legit, Right?

Perhaps you are skeptical of bad credit car dealerships. That’s usually because you don’t know much about them. To some, they may seem too good to be true. But buy here pay here car dealerships are the real deal. While they have more flexibility when it comes to loan terms, they’re still regulated by state and local governments just like traditional lenders are. So, you can do business with them with confidence.

When you work with a reputable bad credit car dealership like AutoMax, you have the assurance of working with professionals who can guide you through every step of the car-buying process. They understand that your situation is sensitive and are committed to helping you succeed. They work with you to determine how much car you can afford based on your income and other expenses, then guide you to vehicles on the lot that fit into your budget. They want you to be successful and make sure you can make your monthly payments because it’s a win-win situation for both parties.

Qualifying For On The Lot Financing At AutoMax Is Easy.

AutoMax makes the loan qualification process extremely easy. Fill out the loan application online before you come into the dealership to get a head start on the process. You’ll need to provide some personal information like your birth date, social security number, and your monthly salary. The best part is most buy here pay here car dealerships don’t pull a credit report on you. Since they loan you the money themselves, there’s no need for a credit report. This is good news for anyone with bad credit because the more hits you have to your credit report, the worse it looks to other potential lenders.

AutoMax approves 100% of the loan applications they receive. They focus on your ability to make future car payments rather than dwell on your past credit history. All they want to see is that you can make your car payments going forward. In fact, AutoMax offers customers an opportunity to work on rebuilding their credit scores by reporting their good payment history to one or more of the top consumer credit bureaus in the country. This means you look good every time you make a payment; the more on-time payments you have, the better your credit score might look. Before you know it, you’ll be on the path to recovery.

Lots Of Payment Options Make It Convenient For You.

AutoMax offers customers a variety of convenient payment options, making it easy for you to not only obtain on-the-lot car financing at their buy here pay here car dealership but also make your payments directly to the dealership. Here are the payment methods available to you at AutoMax:

  • Automatic payment on a debit card
  • Automatic withdrawal from your checking account (ACH)
  • U.S. postal service (snail mail)
  • Phone
  • Text message
  • Online payment portal
  • In-person at the dealership

Call AutoMax For On The Lot Car Financing – Even With Poor Credit

It’s easy to get an auto loan – even with poor credit – when you know where to look. In North Carolina, people with bad credit in Raleigh, Durham, Henderson, Youngsville, or Wilson will benefit from a visit to AutoMax. Stop in today or visit online to pick out your next used vehicle. Buying a used car has never been simpler!

Understanding Property Taxes for Vehicle Owners in North Carolina


The process of registering your buy here pay here vehicle and understanding the associated taxes can be complex. In North Carolina, the Department of Motor Vehicles (DMV) has implemented the “Tag & Tax Together” program, which requires all vehicle owners to pay property taxes upon registration and annual license plate renewal. This blog will hopefully provide clarity about this program, including payment deadlines, methods, and consequences of non-compliance.

Property Tax Payment

When a buy here pay here used car is registered to a new owner or when the license plate is renewed, property taxes become due in accordance with the “Tag & Tax Together” program. It is important to note that dealerships do not collect these property taxes. However, during the purchase of your buy here pay here vehicle, the required sales and highway use tax, which is 3% of the sales price mentioned in the purchase agreement, is paid to the dealership. This amount allows the dealership to register the vehicle in North Carolina.

Payment Deadline & Temporary Registration

As the new owner, the NC DMV grants you a 60-day period to pay the property tax that is due. During this time, your permanent license plate will display a temporary “T” sticker instead of the usual month/year sticker. Additionally, you will receive a temporary registration card indicating the amount of property tax owed. It is crucial to pay this property tax amount by the indicated date on the temporary registration card.

Payment Methods

There are multiple ways to make the property tax payment. You can choose to pay in person at a local DMV license plate agency, online, or via mail. It is essential to keep track of the deadline and select the payment method that is most convenient for you. The NC DMV will also send you a property tax bill by mail, similar to the temporary registration card, for your reference.

Permanent Registration & Consequences of Non-Compliance

Once the property taxes are paid by the designated date on the temporary registration card, you will receive your permanent registration card. This card will include a month/year sticker to replace the temporary “T” sticker on your license plate. It is important to complete the payment process promptly to avoid any potential issues.

Failure to pay the property taxes by the designated deadline may result in the accumulation of interest and potential consequences such as a traffic violation. To avoid such situations, it is crucial to adhere to the payment deadlines and pay the required property tax amount on time.

Contact Information

If you have any questions or concerns regarding property taxes or vehicle registration, do not hesitate to reach out to the dealership or contact the NC DMV directly at 919-814-1779. Our team is here to assist you and provide the necessary guidance throughout this process.


Understanding the property tax requirements and registration process for vehicles in North Carolina is vital for all vehicle owners. The “Tag & Tax Together” program implemented by the NC DMV ensures the collection of property taxes during vehicle registration and annual license plate renewal. By adhering to the designated payment deadlines and paying the required amount promptly, buy here pay here vehicle owners can ensure a smooth and compliant registration process.

What Kind of Insurance Do I Need on a Buy Here Pay Here Car?

Keep Your Used Car Safe In The Raleigh-Durham Area

Auto Insurance requirements vary depending on the state that you live in, regardless of whether you own your car or have it financed through a buy here pay here dealership or another third party. In the state of North Carolina, where AutoMax is located in the Raleigh-Durham area, drivers must carry two types of auto insurance on a car you’re still paying off. Drivers must have liability insurance and comprehensive (collision) coverage.

While most traditionally financed vehicles require full coverage auto insurance, AutoMax offers special buy here pay here car insurance through one of our trusted partners. This insurance meets the state’s minimum requirements and can save you a bundle of money on premiums. It’s called Collateral Protection Insurance, or CPI, and you can purchase it through us when you sign the paperwork on your new-to-you buy here pay here car. Let’s review the types of auto insurance available to you, so you can make an informed decision on how to proceed in insuring your investment.

The Purpose Of Basic Auto Liability Insurance On A Buy Here Pay Here Car

The first type of coverage that drivers of pay here buy here cars are required to carry is called basic auto liability insurance. Basic auto liability insurance does not cover the cost of any damage to your own vehicle or your own bodily injury in the case of an auto accident. However, it does cover any damage you may do to another vehicle or property.

If you want to repair your own vehicle or cover your medical bills after an accident, basic liability insurance won’t be enough for you. You’ll need to come up with the cash to pay for the repairs to your car or for your own medical bills yourself.

Basic auto liability insurance does cover the damage done to any other person or vehicle involved in the accident. So, in the case of an accident with another vehicle, the other vehicle and driver are protected by your insurance. In the case of basic auto liability coverage, it is required to carry at least this level so that other drivers on the road are protected in the case of an emergency. This is also why it is required in the Raleigh, North Carolina area to carry basic liability insurance on a pay here buy here car

The minimum liability coverage required by North Carolina law is as follows:

  • $30,000 per injured person
  • Up to a total of $60,000 for all injured in an accident
  • $25,000 for property damage

Collision And Comprehensive Coverage For Used Cars

Collision or comprehensive insurance is crucial if you are still paying off your vehicle, including those financed through buy here pay here car lots. This coverage protects your vehicle in case of a collision. The time you accidentally back into a pole? Covered. Did your garage jump out in front of you again? Covered. Side-swiped the gas pump? Covered. Mistakes happen, but having collision insurance will help cover you – just in case. Comprehensive or collision insurance gives you peace of mind that you and your vehicle will be taken care of in the case of an accident.

Comprehensive coverage also covers costs in the case of theft, hail damage, animal damage, vandalism, falling objects, and more. Comprehensive and collision are usually purchased in combination. Both types of coverage are required when purchasing a buy here pay here vehicle until it is fully paid off. The downside is that this insurance premium can be expensive, especially if your driving record isn’t squeaky-clean. Auto Max offers you an alternative that can save you some serious dough: CPI insurance.

Collateral Protection Insurance From AutoMax

With a pay here buy here dealership purchase, you can choose from either collision and comprehensive coverage from your third-party insurer, or you can purchase CPI to accompany your basic liability insurance, which you’ll also need to get from an insurance company. 

CPI is a type of insurance coverage offered in-house by AutoMax through one of our valued business partners. Just as a buy here pay here car lot doesn’t consider your credit history, CPI insurance doesn’t consider your driving record before granting you coverage. Instead, you can get CPI insurance at a flat rate of just $89 per month.

So, despite your accident-prone driving record, your auto insurance costs won’t be higher. With traditional insurance options, good drivers are rewarded with lower monthly insurance payments, and those with some past indiscretions are punished repeatedly every time a premium payment is due. Another positive of purchasing CPI through AutoMax is that you can simply pay your monthly premium with your monthly car payment – no need to send in a separate payment.

CPI coverage is equivalent to purchasing both collision and comprehensive coverage, meaning it covers what happens to your vehicle by your driving mistake or rogue natural causes. CPI comes standard with a $500 deductible, something that can vary with traditional insurance depending on what policy level you choose. This means that if damage to your vehicle does occur (whether collision or comprehensive), you’re responsible for the first $500 it takes to fix the damage and CPI coverage will cover costs beyond that. 

If you have questions about our in-house collateral protection insurance, one of our expert sales team members will be able to walk you through the coverage. If you are a Youngsville, North Carolina customer, please call (919) 570-1107. If you are a Henderson, North Carolina customer, please call (252) 430-1006

Bottom Line: You Must Have Insurance Coverage On Your Buy Here Pay Here CAR

As with any type of financed vehicles, our pay here buy here car lot requires insurance coverage to ensure you’re driving legally and keeping your car on the road. Both the liability coverage and the collision and comprehensive are required, or you can choose the liability and the CPI coverage. The good news is that you have options, and the insurance coverage Auto Max can provide you tends to be more affordable than purchasing full-coverage protection required by traditional financing options.

Contact our team of experts today to discuss your buy here pay here used car insurance options.