There’s a certain risk involved in all car buying situations. But, for the most part, buying a car from a no credit car dealer – also known as a buy here pay here (BHPH) dealer – is just as safe as any other car buying situation. The key is using common sense and the available resources to ensure the reliability of the vehicle you’re getting and the reputation of the dealer you’re using.
Buy Here Pay Here Dealership Standards
Buy here pay here car lots have a certain set of standards that must be followed, just like a franchise dealership. So, if you’re unsure of something that’s going on or anything about the dealership or their process makes you feel unsafe, you should look for a vehicle elsewhere.
Typically, all no credit car dealers have a basic set of requirements and protocol to follow. This includes state and federal laws, and practices regulated by the Truth in Lending Act (TILA). Because of modern laws covering all dealerships, including buy and pay here dealers, you can feel safer knowing that you’re protected.
How Does a No Credit Dealer Approve Customers?
Buy here pay here dealers primarily use your income and employment to ensure you can afford car payments. Since BHPH dealers don’t use outside lenders, they typically don’t run credit checks on buyers. Instead, you have to meet the income requirements of the dealership you’re working with. The minimums vary by dealer, but at most no credit car dealers, you can expect:
- A down payment requirement
- Weekly or bi-weekly payments, typically needing to make them in person at the dealership
- Older model used vehicles, with higher mileage
- Higher interest rates
The good news is that when you meet the minimum no credit car dealer requirements and provide a down payment, you can often drive away in a vehicle the same day you apply.
The Bottom Line
When you’re dealing with a no credit check car dealer, you can rest assured that there are rules and regulations in place that cover vehicle sales. When you want a safe way to find a dealer that’s right for you, turn to Drivers Lane. We help people who are struggling with credit issues find the dealers near them that can work with challenging credit situations. To see which local dealer is right for you, simply fill out our no-obligation online auto loan request form today!
