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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.


, - May 3, 2018

There’s one kind of car dealer that may still be able to help if a borrower is struggling with money – as long as they have verifiable income.

Buy and Pay Here Dealers Could Help

Buy here pay here (BHPH) dealerships are car dealers where a borrower can go to finance a vehicle, and return every other week, or even weekly, to pay for the vehicle. The concept is simple, and it works because the dealers who run these car lots don’t rely on outside sources for financing. This gives these dealerships their other name – “in-house” financing car lots.

Needing Income, even if it’s not Earned

Like subprime dealers, the requirements to finance a vehicle through a buy here pay here dealer will vary. Though most of these dealers would prefer their borrowers to have taxable W-2 income, there are some that aren’t so strict about the source of a borrower’s income. As long as a borrower can prove they have enough income, from sources such as social security or disability, they’ll usually still be able to finance a car at these buy and pay here dealers.

If a borrower is “broke,” it’s going to be difficult to find any type of financing. One income source that won’t qualify to finance a car anywhere, however, is unemployment. This can be an unfortunate catch-22 situation for people who need a vehicle to look for employment.

Qualifying with a Buy and Pay Here Dealer

A borrower doesn’t need to have the best credit at these dealerships. Often, BHPH dealers don’t even check credit. All a borrower needs is a job or, depending on the dealer, verifiable income, and proof showing they’ll be able to make their payments. This is important because payments even one day late could result in repossession.

In order to qualify for a vehicle, borrowers have to provide a down payment, proof of income, and a valid driver’s license. Some BHPH dealers will “debt out” a buyer, calculating their debt-to-income ratio, to see if they’ll be able to afford their payments while still paying their other bills. Debting out borrowers helps dealers know the risks they’re getting into, which can be especially important if a consumer is already tight on money.

Other important things to know about buy here pay here dealers: cars will typically be older models with higher mileage, payments are usually made in person, and interest rates will be relatively high compared to other types of financing. Also, financing from one of these dealers may not help a borrower improve their credit, because these dealers don’t always report payments to the credit bureaus.

We Want To Help at CarsDirect

As a borrower, you may think that one of these buy and pay here dealers is the only option you have left. Often, that’s not the case. You might be surprised by what a subprime dealer can do for you.

If you need help finding the place to finance your next vehicle, CarsDirect wants to help. We work with a nationwide network of special finance dealers that have access to lending resources that help people with bad credit, no credit, and even bankruptcy. Fill out our simple auto loan request form to get started today!

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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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