Like any major purchase there is a process to the transaction and buying a vehicle with bad credit is no exception. Being prepared can help you avoid any problems or delays so read this list of items and information of what you should bring to the buy here pay here car dealer to ensure a smooth automobile buying experience.
Doing business with a BHPH dealer is slightly different than buying and financing a car at the average car dealer. I have put together this menu of items that most all dealers that offer in house financing require to start the approval process and why you need to bring them with to the dealership. You don’t want to have to make two or three trips home for information if you can complete the entire transaction in one visit.
- Driver’s License: This one is no secret, you need a license if you are going to be driving the car and in many states you can’t even buy a car with cash without one.
- Proof of Income and Employment: The buy here pay here car dealer is not going to accept your word on how much you earn and how long you have been on the job. They want documentation. So make sure you bring your most current paycheck stub and if you stub does not show a year to date income you will need to bring enough of them to substantiate your claim on income. It would be a good idea to bring a copy of your W2 form from the previous year if your check only shows a month or two of income. This is one of the most important items on this list to qualifying for your auto loan.
- Personal Financial Information: You are going to be filling out a credit application and it is important that you bring all the information you need to fill it out completely. Have your bank account information and account numbers, credit card accounts and any creditors that you owe including the name address and phone number. Make sure you also have the address, phone and contact for your employer.
- Proof of Residence: The dealer wants to know where you live and how long you have lived there. The required proof would be a lease agreement if you are renting or your mortgage documents. The dealer is looking for stability. If you change your address every other month it’s a red flag and a question to whether you can commit to a long term installment contract. If you have recently moved then you should bring documents that show how long you have lived at your previous address with you to the BHPH car dealer.
- Current Utility Bill: This goes hand in hand with your proof of residence. They want to make sure you are current on your utilities and that the billing address is the same as your residence. This could be a phone bill, electric, gas or trash collection bill. The more the merrier, so bring them all if there is any question. The more documentation you have the better. You can always bring them back home if the dealer doesn’t need them.
- Personal References: Most buy here pay here car dealerships want five or six personal references. These are not credit references to determine if you pay your bills these are used to find you if you don’t pay your car payments. These should be relatives that are not living with you such as sisters, brothers, aunts and uncles. You can also use close personal friends. Make sure you bring with you to the dealership the addresses and phone numbers of these people. These people will receive calls to locate you if you decide to skip out on your car loan.
- Proof of Auto Insurance: All lenders require that the car that has a loan on it be insured and in house financing is no different in that respect. The buy here pay here car dealer wants to know that they will be protected in case the vehicle is destroyed or stolen. When the vehicle is properly insured the lender will be paid in full first with any equity being paid to the borrower. You can talk to your insurance agent and set up a policy that can be activated as soon as you make your purchase or very often the dealer can help you arrange auto insurance coverage.
- Your Down Payment: Most buy here pay here auto dealers require a down payment of some kind and you should bring this with you to the dealer. Every dealer is different and so is the customer so down payments could be as small as a couple hundred dollars, but they can also be higher. Be prepared to complete the transaction by bringing your money with you to the dealer.
We have talked to several buy here pay here dealers across the county and this list of items should satisfy most of them when it comes to getting you approved. However if you have selected a specific dealer would be wise to call them first to make sure that you have everything you need to bring to the buy here pay here dealer.
…Save some time and be approved before going to the dealer…
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