Your Guide to Buying a Car with Bad Credit

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Buy Here Pay Here Dealerships Offer Alternative Lending Options For Used Cars In North Carolina

Having bad credit doesn’t stop you from needing a car. Many people who want to buy a vehicle worry about their ability to purchase because they have poor credit. They stress that they won’t be able to get a loan from a bank, a credit agency, or another traditional lender. They believe lenders will reject them because of their low credit score and poor history.

Some tools can help people with bad credit focused on buying a car. There are plenty of used cars for sale at Buy Here Pay Here dealerships. These dealerships can be a saving grace for anyone who has experienced serious credit issues in the past. They specialize in offering a bad credit car loan to you who needs a car.

Buy Here Pay Here dealerships, such as AutoMax, have a proven history of enabling people with bad credit to get the vehicles that they so desperately need.

What Is A Buy Here Pay Here Dealership?

Many people with bad credit wonder what a Buy Here Pay Here dealership is. Buy Here Pay Here dealerships have been around for a long time, and AutoMax has some of the nicest used cars in North Carolina at our Buy Here Pay Here dealership.

At a Buy Here Pay Here dealership, the dealership handles vehicle financing, instead of a third-party. Traditionally, you would see a third-party like a bank or lending firm extend credit to a driver. However, a Buy Here Pay Here dealership can alter the process by not only selling you a vehicle but also financing the purchase.

People who buy from such a dealership tend to have lower credit and struggle with getting loans from a traditional institution. Buy Here Pay Here dealerships may need to charge a higher interest rate than traditional lenders because of the poor credit quality of the borrower and the higher risk involved.

This industry was formed in the 1970s in the United States during the savings and loan crisis when interest rates were significantly higher. The industry has been around ever since and has served as a niche market for those who do not have good credit. Buy Here Pay Here dealerships reduce their risk by also selling people the vehicle and making a profit from that. This is how they can assume the risk of financing a vehicle for someone with low credit quality.

Six Advantages Of Buy Here Pay Here Dealerships

There are many advantages to buying a vehicle from a Buy Here Pay Here dealership:

  1. If you cannot get a loan from traditional lending sources you can get a loan from Buy Here Pay Here dealerships. You might have to pay a marginally higher interest rate, but you can still have access to a vehicle that you ordinarily would not have access to. Buy Here Pay Here dealerships can enable you to build up your credit score as long as you make your payments on time and make them regularly
  2. You can usually get a car faster. When dealing with a traditional lender, you might not be able to finalize the deal for days or weeks, but you can leave in your new used vehicle the same day you decide to make the purchase at AutoMax. This is a critical advantage for people who need a car quickly and want to get moving fast.
  3. There is less paperwork. You do not have to face the daunting credit checks that might occur at a normal institution. The lack of paperwork is a huge stress reliever if you simply want to buy a vehicle and leave the dealership that day.
  4. Your credit score will not drop. Buy Here Pay Here dealerships do not perform extensive credit checks. Extensive credit checks lead to your credit score dropping, but that negative consequence is completely taken care of by buying through a Buy Here Pay Here dealership.
  5. The borrower can build a close relationship with the entity selling them the vehicle, since the same entity is also financing the deal. There are many advantages to building a closer relationship with the financer, which is usually not the case when you get financing via a traditional lending source.
  6. You typically don’t need to put down a large down payment. AutoMax is the top Buy Here Pay Here dealership in North Carolina, and we pride ourselves on building closer and deeper relationships with you. Our most popular sales event is held during the middle of November through the middle of January. AutoMax offers a $89-down deferred seasonal payment program. This Tax Max program means you can drive away in a vehicle today and only pay an $89 down payment. The rest of the down payment will be paid when you receive your tax return for the year. Please refer to our website for more details about this deferred seasonal payment program.

Buy Here Pay Here Dealerships In North Carolina

As you can see, there are many unique features and benefits to purchasing a vehicle from a Buy Here Pay Here dealership. Whether it is the ease of getting credit, the speed at which you can make a transaction, or the lack of required paperwork, you can solve your car issues by financing your next car purchase through a Buy Here Pay Here dealership like AutoMax in North Carolina. Visit us at one of our used car dealerships in Henderson and Youngsville, or get started right away with our online credit application.