When you have bad credit or no credit at all, getting a new car may seem out of reach. But you have options beyond traditional car dealerships. Specifically, you can seek financing from buy here pay here no credit check near me dealers. These dealerships typically finance auto loans in-house for borrowers with bad or no credit. Typically, these lenders charge high interest rates that are significantly higher than you might find with an auto loan at a bank or credit union.
What is the trend in BNPL?
The dealers also typically sell older cars of lower value, meaning you might end up paying more than the vehicle is worth. And if you default on your payment, the dealer might install devices that track or disable the car. Lastly, the dealers typically don’t report your payments to the main consumer credit bureaus, so they don’t help you build a positive credit history.
Despite the rosy marketing, buy here pay here no credit check near me financing is often expensive and not worth it. Rather than going this route, you should instead work on improving your credit score and seeking auto loan preapproval from lenders that offer loans to borrowers with bad or no credit.
To get an idea of how much you can qualify for, check your credit scores and compare auto loan quotes from multiple lenders online. You can also talk to your local banks and credit unions, who might be willing to lend to you based on other factors such as income or residence.