Picking the right lender to finance a car in Winchester, VA can be tough. If you have bad credit, or even no credit, you may be especially lost on your auto financing journey. The good news is you have options available, with Winchester having a number of buy here pay here (BHPH) lots along Highway 11.
Buy Here Pay Here in Winchester, VA
What exactly is a BHPH car lot, and what do these dealerships do? BHPH dealers make in-house auto loans, which means they sell you a vehicle and finance it all in one place. The entire process of getting approved for a car loan and buying the vehicle happens at the same time, and can generally be finalized in a matter of a few hours.
What makes these car lots attractive is the fact that they don’t usually run credit checks. Instead, they base your approval on other factors, making it easier to qualify. To get approved for a BHPH auto loan around Winchester, VA, the dealership typically requires you to have a steady income, a down payment, a working phone, and proof of residency.
BHPH Pros and Cons
If you’re still on the fence about financing through a BHPH lot, consider these pros and cons:
- Credit doesn’t matter: This is the biggie – the majority of BHPH dealers don’t run credit checks. So, it doesn’t matter if your FICO score is in the 500 range, or that you have a bankruptcy or multiple repossessions on your credit reports. The dealership only cares about whether or not you’re able to pay for the vehicle.
- Quick and easy process: In-house dealers don’t work with third-party lenders, so the entire car buying process is done quickly at a BHPH lot. You’re able to sign and drive off with your vehicle with minimal waiting.
- Positive payments aren't reported: Many BHPH dealerships don’t report loans or positive payments to the credit bureaus. This means the loan can't help you improve your credit score the way one with a lender that does report on-time payments can. They do report are any missed payments, so if your credit score is poor already, it could take an even bigger hit if you’re not consistent with your car payments.
- Higher interest rates: Because your credit score isn’t taken into account, these dealers typically charge higher interest rates – making the overall cost of the auto loan higher in the long run.
- Bigger down payments: You almost always have to make a down payment on a BHPH used car. The dealership sometimes requires a down payment that covers most of the vehicle’s cost, and that can be a few hundred to a few thousand dollars out of pocket, depending on the car.
It’s important to note that the types of vehicles in these lots are generally older and could come with higher mileage. This doesn’t necessarily mean they’re bad cars, it just means you might want to run a VIN check to make sure the vehicle hasn’t had its title washed or has been damaged. You may also want to have it inspected by a certified mechanic and body specialist to make sure there isn’t any hidden damage.
Looking for a Dealer in Winchester, VA?
Now that you have a basic understanding of BHPH car lots, you may be wondering which dealership in Winchester, VA is the best one for you. The good news is you don’t have to look yourself, Drivers Lane can point you in the right direction.
We work with a nationwide network of dealers that specialize in helping credit-challenged car buyers get the financing they need. Getting started is easy, just fill out our free-of-cost auto loan request form, and we’ll get right to work finding a local dealership for you.