You can buy a car with no credit check through dealerships that offer in-house financing. These businesses are commonly referred to as Buy Here, Pay Here dealerships. A BHPH dealer makes this possible by allowing you to make payments on a car you want to buy, while in traditional finance circumstances, by paying the lender, typically a bank, that provides your loan directly. You can expect to make payments weekly or monthly, depending on the dealer's requirements.
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Things you need
- Driver's license
- Proof of residency
- Proof of income
Save money for a down payment or gather funds before shopping at a BHPH lot. For most cars at BHPH dealers, you can expect to put a minimum of £650 down toward a vehicle. This money should be available to you before you begin car shopping.
Gather your last paystub, driver's license and proof of residency. While these dealers do not require a credit check, they do require that you have verifiable income and a permanent address. Electric, water, cable or cell phone bills will provide dealers with proof of residency.
To find a local BHPH dealership, do an Internet search for "bad credit dealers" or "buy here, pay here dealers" along with your town and state. You may have to search outside of your area, depending on where you live, so try neighbouring towns or the closest large city for more results.
Many BHPH dealers put the required money down and monthly payments on the window of inventory cars, but you can speak to representative to find a car within your budgets. Shop until you find a car you like.
Agree on amount of money down and monthly payment for the car you pick, but keep in mind that BHPH lots are often non-negotiable unless you're paying cash. Set up insurance on the car you choose, which is a requirement of any dealership before you can complete a purchase. Your salesperson should set up your insurance for you, making sure you list the proper loss-payee, which is the dealership until the loan is satisfied. Proof of insurance should be faxed to the dealership.
Sign any paperwork required by the dealership. Read the fine print, so you are aware of your interest rate, length of payment term and penalty fees. The dealer will provide and handle your motor vehicle paperwork along with temporary registration and number plates.
Tips and warnings
- Many BHPH lots do not report to the major credit bureaus. If you're looking to improve your credit, speak with your dealership before you agree to financing because you may be able to arrange for credit reporting.
- Ask if the dealer offers a grace period for late payments. It is not unusual for a BHPH dealer to immediately repossess your vehicle for non-payment, which is much sooner than traditional lenders. Find out how much you can expect to pay to get your car back if this circumstance occurs.
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