Buy a Car with Bad Credit
Three Tips for Buying a Car with Bad Credit or No Credit
Is your bad credit keeping you from buying a car? Being turned down for car loan can be frustrating and embarrassing. So how can you get a quality used car when banks and traditional car dealerships say no? At CarHop, we finance car purchases for people with bad credit across the United States every day, so we’ve got some advice on how you can get driving today.
Tip 1: Buy Here, Pay Here
If you’re shopping for a used car and are suffering from bad credit (or have no credit at all), a buy here, pay here dealership like CarHop might be exactly what you’re looking for. Sometimes, instead of “buy here, pay here,” you’ll hear “on the spot financing” or “tote the note.” All these expressions mean is that, by purchasing your used car, truck or van through a dealership like CarHop, you essentially get financed through CarHop rather than through a bank. Unlike other used car dealerships, we don’t hand off your credit application to a bank — we work with our exclusive in-house finance company to get you approved without a traditional car loan from a bank. If you need a car or truck and suffer from bad credit or no credit, this approach might be your best option.
Here’s how buy here, pay here works. If you have poor credit or no credit at all, you may not be able to get a car loan from a bank or credit union. If you don’t have the cash to buy a vehicle, you’ll need some form of financing. This is where CarHop comes in. We let you buy directly from our dealership. This means you can pay at a CarHop location — our in-house financing basically takes the place of a traditional car financing! As a result, you can usually get approved right away rather than waiting for the bank’s loan approval process. If this is what you’re looking for, you can apply for financing online today!
Tip 2: Service After the Sale
Many smaller used car lots offer their vehicles “as is” with no or very little warranty coverage. CarHop is different. CarHop backs every vehicle with an exclusive Customer Protection Plan that includes:
- An 18-month, 18,000-mile limited warranty on every vehicle*
- A seven-day Free Exchange or Money Back Guarantee! *
- AutoCheck® Vehicle History Report*
Each of these items protects you, the car buyer, in different ways. The warranty helps if something goes wrong with the car, after all you’re buying a used vehicle and even new vehicles have issues from time to time. A warranty will give you peace of mind that if a major malfunction happens with your vehicle, you won’t be stuck covering the entire cost. Be sure to ask what the warranty covers, because it is a limited warranty and only covers things like the engine and powertrain, not convenience items like a radio.
The seven-day exchange or money back guarantee is there in case you change your mind, have buyer’s remorse or discover the vehicle just isn’t right for you. It allows you to bring the car back (in the same condition as you purchased) and exchange for a different vehicle of the same value.
A vehicle history report, like those from AutoCheck® or CarFax® let’s you know what your vehicle has been through before you purchased it. A clean report tells you your vehicle hasn’t been in any major accidents, flood or had major issues before your buy it.
Tip 3: Help Yourself Improve Your Credit
Improving your credit isn’t easy, but it is possible. The best way to improve your credit is by making regular payments to a company that will report those payments to the three major credit bureaus. While reputable used car and buy here, pay here dealers like CarHop will report your payments to the credit bureaus, some of the smaller “mom and pop” dealers do not, so be sure to ask the dealer before you buy. As long as you stay on time and don’t miss your payments, you have an opportunity to improve your poor credit every month. By improving your bad credit you may have new opportunities to purchase brand new cars, buy a home, or accomplish many other things you can’t do if you suffer from bad credit. While companies like CarHop are not credit repair organizations, making regular payments will help you build your own credit.**
What are you waiting for? CarHop is ready to give you the credit you deserve to get the car you need!
*Deductible May Apply. See store copy of limited warranty and details about money back guarantee and free vehicle exchange. Vehicle History Report is for informational purpose only.
**On-time payments may contribute to improved credit scores, while late or missed payments may contribute to lower credit scores.