How Does Buy Here Pay Here Work?

Buy here, pay here car dealers are usually small car lots that offer to finance cars without a credit check. While financing is not 100% guaranteed, if you have a job and a reasonable down payment you can easily get approved for financing. While this can be an expensive way to buy a used car, it can be helpful for people that have credit problems and need a second chance to get back on their feet.

Requirements for Getting Approved

Most dealer that offer in house financing are going to require you to provide the following:

Proof of Income

This can be a recent paycheck stub showing your year to date income. If you are self-employed, you may be required to provide a recent bank statement or last years tax return. This varies from dealer to dealer.

Proof of Residence

A utility bill, phone bill or other utility payment bill that has been mailed to your physical address is usually required. In some cases, a dealer may ask for two. The main purpose of this is to verify that you do in fact live in the area and if you default on your payments, the vehicle's "garage" address will be known for recovering the collateral (vehicle).

Proof of who you are. Usually, two forms of ID are required. A valid drivers license and social security card are usually needed.

Proof of Car Insurance

If you don't already have car insurance, you'll be required to purchase the insurance and provide proof of the policy being in force before being able to leave the dealership with the vehicle.

Proof of Bankruptcy Discharge

Most buy here pay here type dealerships are not going to finance a car for someone that is currently in a bankruptcy. The exception may be if you have written documentation from the court approving you to incur new debt. Discharge papers showing that the bankruptcy has been completed or dismissed are usually required.

All in all, a buy here pay here can be a convenient and quick way to get on your feet with some wheels, without having to have a credit check. We encourage you to rate your shopping and buying experiences with buy here pay here dealers in your area, here at Let the world know what you know about local dealers!