The family car isn’t what it used to be. Over time, your needs have changed, but the car is just like it was when you bought it. While it would be nice to go out and buy something brand new, that is really not an option if some time out of work damaged your credit. Even though there is now room in the budget to swing a car payment, most lenders won’t work with you until your rating moves up a few points.
One approach is to ride it out and make do with your used car for another year or so. During that time, make sure all your bills are paid on time. If you can manage to pay off any of them, including any balances on your credit cards, that will also help to boost your credit rating. Along with the positive comments from your creditors, carrying less debt in relation to your current income level will mean garnering more favor with lenders.
When you don’t think the car will make it another year and you really need a reliable way to get to and from work, there is the option of working with dealers who offer their own financing arrangements. The beauty of these types of finance deals is that your past credit issues will have little to no bearing on getting a car loan. The focus is more on where you are right now rather than what has happened before.
While some car dealers use third party lenders who are willing to work with customers who have less than great credit ratings, others choose to manage their own financing in house. That’s exactly what we do here at Auto City, and we’ve been doing it since 1958. This creates a lending situation known as buy here pay here. You are not dealing with a faceless entity that is sitting in some big city hundreds of miles away. Instead, you are working with the person who is sitting across the desk!
Buy here pay here loans tend to focus on a few basic criteria. You will need proof of income, such as your most recent paycheck stub. If you happen to be self-employed, your last set of income tax returns or possibly a report created using your accounting software will do the trick.
Along with proof of your income, you will also need some documents to show that you do have a permanent residence. A utility bill or two will often be enough to provide the proof that you need.
Some lenders will also want proof that you have an active bank account. Take along you last bank statement. The lender is not all that concerned with the balance and there is no real interest in what purchase you’ve made recently. That statement will prove that you have an account that is active and that you have not racked up any returned check fees during the most recent period.
While it is true that the interest rate may be a little higher, the trade off is that you can lock in payments that fit neatly into your budget. Many of the dealers will work with you to set up the payment schedule to coincide with your paydays. There is often the option of making weekly or biweekly payments if those fit your budget more readily than a larger monthly payment.
You don’t have to make do with a car that is no longer meeting your needs. Check with local dealers who offer their own financing solutions and you could be riding in style in a very short period of time. If you’re in Texas, make sure to take a look at our inventory, as we probably have a great fit for you. In some cases, you can drive your car away with just $500 down, so apply today!