Dealerships that promise to finance cars for people with bad credit without credit checks commonly use the slogan, "we finance". There are some things that you should know before you go spending your money at one of these car lots and some of them may surprise you.
One thing that will surprise you is that "we finance" isn't really giving "real finance" to anyone. Buy here pay here car lots simply keep the title to the automobile until you've paid the full price plus interest. It's not actual auto financing that will help your credit score.
One thing that won't necessarily hurt your credit score, but will sure hurt your wallet is the down payments that these places want. In many cases, you could buy the same car on the street for just a little more than the amount that you have to put down at a buy here pay here car lot. That's just taking advantage of someone's inability to get real financing, or so they think.
That kind of taking advantage of people has landed many buy here pay here dealers in court. Sadly, because of the fine print in the sales contracts, there is little that can be done. If you do end up using one of these types of car lots, be cautious and take care to read the contract in full before signing.
One option that people have that have bad credit, is auto financing via the internet. There are some companies that provide financing for folks that have credit problems and help them to get real car loans. By getting a real car loan, you're able to rebuild your credit rating. With good lending services that will work with you based on your monthly income, you're able to get more car for your car payment, too.
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