What to Do When You Don't Have a Job and Need a Car Now

Get Car Financing
Even with poor credit.

By

Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, - September 14, 2018

The cycle of needing both a car and a job can leave you feeling stuck – you need a vehicle to get to a job, but you need a job to get a car. While it’s true you need a steady income to finance a vehicle, there are a few options to explore in the meantime.

A Steady Source of Income

When it comes to financing a car, lenders need to know that you can make your monthly payment. For the most part, this means having a steady income. If you have good to excellent credit, lenders aren’t going to worry too much about where that income comes from. If you have poor credit, bad credit, or no credit, however, financing isn’t going to be as easy to come by.

When your credit is less than stellar, lenders have certain qualifications you need to meet in terms of employment and income, such as how long you’ve been on the job. Typically, lenders ask you to provide proof of income from employment you’ve had for at least six months, while showing a three-year work history with no gaps longer than 30 days between jobs.

If you just started a new job, have gaps in your employment history, or the majority of your income comes from sources other than employment – such as social security, disability, or a pension – and you’re struggling with credit issues, you likely need to go to an in-house financing dealership to get a vehicle.

Getting In-house Financing

In-house financing dealerships, also known as buy here pay here (BHPH) dealers don’t rely on outside lenders to provide borrowers with financing. Instead they act as both dealer and lender, making loans generally easier to qualify for.

As BHPH dealerships, they aren’t as interested in where your income comes from, as long as you can make your payment on time. The catch is that you have to make enough to keep up with your payment, and usually need a significant down payment to help cover the cost of the vehicle. Both your payment amount and the necessary down payment required vary depending on your situation, the BHPH dealer, and the car you’re purchasing.

These dealerships can be a great option when you feel there’s nowhere left to turn for the vehicle you need. But, there are some downsides to financing through a BHPH dealer that you need to be aware of before you jump at the chance to get a car:

  • The vehicles found on BHPH lots are typically older models with higher mileage.
  • In-house financing typically comes at a price – you often find higher interest rates are charged when you go this route.
  • Unlike a traditional or subprime car loan, your on-time payments might not be shared with the national credit bureaus, which means car loans at BHPH dealerships won’t improve your credit over time like other auto loans can.

If these are trade-offs that you can live with in order to get the car you need, a BHPH is definitely an option. It’s also a good choice if you’ve been turned down due to employment or income requirements at other second chance dealers, or if you just need something to get you by while you’re building your job history.

Get on Track with CarsDirect

If you’re in a bind because you need a car now, but don’t have the job history to qualify for a traditional subprime loan, a BHPH dealership may be right for you. If you’re not sure what your options might be – subprime or otherwise – CarsDirect wants to help.

We work with a nationwide network of special finance dealers that have the lending resources available to help people in many types of credit situations. Just fill out our fast and easy online auto loan request form today and see what we can do for you!

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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