How Do You Work You Drive Dealers Work?

Get Car Financing
Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - March 12, 2019

You work you drive dealerships, also known as buy here pay here (BHPH) car lots, work a little differently than traditional dealers. Instead of buying a vehicle at a dealership and getting financing from a lender, you get both all in one place, many times on the same day. Curious about you work you drive dealers? Keep reading to find out more about them.

You Work You Drive Dealership Qualifications

You work you drive dealerships offer another option for bad credit car buyers looking for financing. The dealers are also the lenders, and finance vehicles in-house. Because of this, qualifying for an auto loan is easier through one of these dealerships compared to a traditional special finance dealer.

You work you drive dealerships look at factors outside of your credit score to determine approval. In fact, most don’t look at your credit score at all. You could be a credit ghost or have poor credit and still get approved for a car loan – it all comes down to your income and down payment.

In order to qualify for a you work you drive auto loan, you need to meet the income requirements set by the dealer. Bad credit lenders that work through special finance dealerships typically require a minimum income of $1,500 to $2,000 a month before taxes, but this varies at you work you drive dealers. Make sure you bring in a copy of your most recent computer-generated pay stub showing year-to-date earnings to serve as proof of income.

Each dealerships is also going to have their own down payment requirement. At you work you drive dealers, how much you need to put down often depends on the vehicle you choose. You can use cash, trade-in equity, or a combination of the two as your down payment.

You Work You Drive Dealership Financing

There are a few key differences between you work you drive car lots and traditional dealerships. If you're considering getting financed through one of them, you should be aware of these things:

  • Vehicles on the Lot – The car selection is generally limited, and you aren’t going to find any new vehicles on these lots. The cars tend to be older models, so makes sure you do a VIN check, request a vehicle history report, and have a certified mechanic do a pre-purchase inspection.
  • Making Payments – Paying on your auto loan is often different, too. Some may require that you make in payments in person, which could be inconvenient for those that don't live nearby. They may also have you pay on a weekly or bi-weekly schedule, depending on your own pay period. Of course, some of these dealers accept electronic and mailed payments and follow monthly payment schedules, so just make sure to ask about these specifics before agreeing to anything.
  • Interest Rates – To offset the lack of a credit check, you can also expect your interest rate to be in the double digits. According to Experian, the average interest rate on an auto loan from an independent used car dealership was 12.06 percent in the fourth quarter of 2018. Make sure to factor these interest charges into your budget.

Need Help Locating a Dealership?

If you're struggling with bad credit, CarsDirect wants to help you a locate a dealer near you that can help. We work with special finance dealerships, including you work you drive dealers, all across the country that are experts at handling various credit issues.

If you want to get matched with a local dealership that knows how to handle imperfect credit, get started by filling out our obligation-free auto loan request form right now.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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