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Bad Credit Auto Loan vs. Buy Here Pay Here Dealership

Finance a Vehicle With Less-Than-Stellar Credit in Kansas City

If you need a vehicle but have no credit history or a credit score that is subpar, you may wonder how you can get financing for a good, reliable vehicle. Options for getting a vehicle loan are limited for buyers facing these challenges, particularly during these trying economic times. There are a few different options available to finance a vehicle in such circumstances, including bad credit auto loans and buy here pay here vehicle dealerships.

What is a Bad Credit Auto Loan?

A bad credit vehicle loan, as the name implies, is a loan available for those with a credit score below 620. (For reference, credit scores between 670 and 739 are considered “good.”) These loans typically start with the finance manager at an auto dealership, who has a list of lenders that may make a loan to a person with poor credit. The finance manager will assist you in determining how much you can afford to borrow, assuming you stay within some pretty strict guidelines that are dictated by the outside lenders. The process can take some time and effort, and the finance manager may not be able to find a lender who will lend to you.

bad credit auto loan approval

Buy Here Pay Here Financing

Buy here pay here auto dealerships specialize in selling vehicles to people with bad credit, or no credit at all. These vehicle sales are a buy here pay here dealership’s only source of business, unlike a traditional dealership whose revenue relies much more heavily on vehicle sales to more “ideal” borrowers (and that are financed through outside banks).

At Auto Bank KC, Kansas City’s premier buy here pay here dealership, in-house financing is all we do. Our dealership exists to serve a specialized market that consists of those who cannot get a typical vehicle loan. Because we don’t have to report to third-party lenders, we get to make our own decisions about vehicle financing. We fund loans directly from our own cash flow, which means we have a lot more options for customized financing that fits your budget.

Auto Bank KC makes it easy for buyers to get financing, no matter the state of your credit. We have a process that allows you to quickly and easily apply for financing online, so you know instantly the amount of the loan you qualify for. We make sure everything about the lending process is streamlined, which takes the headache out of financing a used car purchase.

We keep a large inventory of cars, trucks, and SUVs made by all the major manufacturers, so we’re confident you’ll find a vehicle that suits your needs and fits your style. Our dealership staff scours the market for quality used cars, and then our highly-qualified vehicle service technicians inspect the car to make sure it meets our stringent quality standards. We want your vehicle to be reliable, safe, and affordable.

Another advantage to buy here pay here dealerships is that they can tailor a flexible loan structure that fits your particular budget. Auto Bank KC will also accept a trade-in of your current vehicle, allowing you to upgrade your ride.

Which Vehicle Financing Option is Right for Me?

Both bad credit auto loans and buy here pay here dealerships can help you upgrade your future credit rating by reporting your on-time loan payments to the major credit rating agencies. This will allow you to get more traditional financing for other cars, or even larger purchases, in the future.

That being said, there are some advantages to a buy here pay here dealership over bad credit financing at traditional dealerships. Primarily, we’re in control of your transaction from start to finish—there is no third-party lender approval involved in the transaction. This can potentially result in lower fees and interest rates, saving you substantial amounts of money over the term of the financing agreement.

There are almost always multiple alternatives for vehicle financing available for any purchaser, which can get you driving away in a new vehicle quickly and on the road to good credit. At Auto Bank KC, we’ll do everything in our power to structure a payment plan that is fair and workable for both parties. Browse our online inventory and then stop by one of our two convenient locations in Kansas City, MO.