Obtaining a buy here pay here no credit check miami car loan can be a convenient way to get a car if you have bad credit. However, there are some potential problems that you should be aware of.
Can I get a loan with a 500 credit score?
First, the interest rates on a buy here pay here car loan can cost you a lot of money. Many dealerships charge up to 20% on these loans, which can be four to five times more than a traditional auto loan. It can also be difficult to refinance. And if you miss a payment, your car could be repossessed. This can be costly and can cause a negative mark on your credit history.
Another problem with buy here pay here car loans is that you may borrow more than the car is worth. You have to make sure that you have enough cash on hand to pay off the car. This means that you may have to pay a high down payment on the car, which will limit your choice of cars.
If you have bad credit, you may find that traditional dealerships will not grant you a car loan. This is because they want to make sure that you have the easiest time possible repossessing the car if you have to. However, you can still get a car at a BHPH dealership. This is because the dealership acts as both the seller and the lender.
A BHPH dealership is willing to give you a car if you can prove that you can afford to make the payments. However, if you have a low credit score, you may not get an immediate decision.