If you live in Seattle and have little or no credit, you can still get a car loan. While you may not be able to get pre-approved from a bank or credit union, you can find dealerships that don’t perform credit checks.
Buy here Pay here Car dealers
Subprime lenders check your credit, so if you’re looking for a dealer that doesn’t look at your credit history at all, you need to find a buy here, pay here (BHPH) dealer.
BHPH dealers do not perform credit checks unless otherwise stated. This means you might have no credit history and still be approved for auto financing. Instead of using your credit to determine approval, they factor in your income, bills, and down payment.
Although the minimum income requirement varies, many of these dealers like to see income of at least $ 1,500 to $ 2,000 per month before taxes. BHPH dealers don’t care where your income comes from, as long as you earn enough you are likely to be approved.
In addition to the income, BHPH dealers usually require a large down payment. the amount of money you need usually depends on the car you choose, but you can use cash, trade-in equity, or a combination of both to cover it.
Disadvantages of car dealerships without a credit check
Although BHPH dealerships seem ideal for car buyers without credit, they are not always the best choice. Of course, these dealerships can approve buyers with no credit history, but that also means they typically don’t report loans or payments on time to the three major credit bureaus. So if improving your credit score is essential, you might want to reconsider a BHPH auto loan.
On top of that, your interest rate will be higher than average because they don’t do a credit check which increases the overall cost of the loan. Additionally, your vehicle selection is limited to what is on the lot.
Some BHPH lots have a wider lineup of newer cars, but for the most part you will need to choose an older used vehicle. As with any used car, you should check its vehicle history report and have it inspected by a certified mechanic before purchasing it.
Need help finding a reseller in Seattle?
BHPH and special finances dealerships are scattered all over Seattle. In fact, you might have seen this type of dealer around SoDo or the college district without even realizing it.
While you can drive around town from dealership to dealership, we can help you find the one that’s right for you. Auto Express Credit connects consumers with resellers near them after completing our free and quick form auto loan application form. Whether you’re in Seattle or elsewhere in Washington state, we want to help. Start today!