Low Down Payments with a Buy Here Pay Here Lot

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Even with poor credit.

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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.


, - August 21, 2018

Saving for a car can take some time and effort. One thing you may have trouble with is saving up for a down payment. If you have bad credit and are considering a buy here pay here (BHPH) lot, you can expect a down payment requirement of some kind. But just how much, or little, money you need to put down depends on the dealer and their requirements.

What is a Buy Here Pay Here Dealer?

A BHPH dealership isn’t the same as a traditional dealer or lender. These dealerships make car loans on used vehicles in house, meaning you can sign and drive on the same day at the same place. Most BHPH dealers also don’t run credit checks, and instead use your income to determine what you qualify for. Although these dealerships don’t typically report loans or positive payments to the credit bureaus, BHPH lots can be a great alternative for car buyers with really bad credit who need a vehicle fast.

With a BHPH dealer, your payment plan may be tailored to how often you get paid. Whether it’s weekly or bi-weekly, you may have to pay in person. If you don’t, you could end up in without a car.

What’s the Least I Can Put Down for a Used Car?

There’s no set minimum down payment required because each car is different, and each BHPH dealer is different. Most BHPH dealerships are adamant about their down payment requirement – there’s really no room to negotiate this. Some BHPH dealers require a sizeable down payment that usually covers the original cost of a vehicle. Since the main goal is to make sure the down payment covers the cost, if a car is older and has higher mileage on it, you may only be required to put a few hundred dollars down.

In short, it’s really a gamble. You could make a low down payment on a car from a BHPH lot, but the condition and reliability could be iffy. However, not all vehicles on these lots are old and in bad shape, and you could find a gem if you do some searching. But, the likelihood that you’ll find a lower down payment on a good car is minimal. Make sure you discuss this with the dealer, and see if there are options for vehicles you might consider.

The Bottom Line

You won’t be able to avoid the down payment requirement from a BHPH dealership. What you can do is plan for it by budgeting accordingly and asking the dealer what their down payment requirements are.

On the other hand, if you’re ready to finance a vehicle with a subprime lender through a local dealer, but don’t know where to turn, let CarsDirect lead you in the right direction. We connect consumers to dealerships that are capable of assisting car buyers in many types of credit situations. Start the process by filling out our auto loan request form today.

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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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