Car Lot Finance

Information on The Buy Here Pay Here Buying Process

What your in-house finance company expects:

Driver’s License

Proof of Residency

Proof of Income

Down Payment

 


1: Save money for a down payment or gather funds before shopping at a on site financing car lot. For most cars at Buy Here Pay Here dealers, you can expect to put anywhere from $500 to $2500 down toward a vehicle. This money should be available to you before you begin car shopping.

2: Gather your last paystub, driver's license and proof of residency. While these dealers may not require a credit check, they do require that you have verifiable income and a permanent address. Electric, water, cable or cell phone bills will provide dealers with proof of residency.
 
3: To find a local used car dealership that suits your needs, do a search on carlotfinance.com

4: Many Buy Here Pay Here dealers put the required money down and monthly payments on the window of cars on their lot, but you can speak to representative to find a car within your budget. Shop until you find a car you like.

5: Agree on amount of money down and monthly payment for the car you pick, but keep in mind that Buy Here Pay Here rates are often non-negotiable unless you're paying cash. Set up insurance on the car you choose, which is a requirement of any dealership before you can complete a purchase. Your salesperson should set up your insurance for you, making sure you list the proper loss-payee, which is the dealership until the loan is satisfied. Proof of insurance should be faxed to the dealership.

6:Sign any paperwork required by the used car dealership. Read the fine print, so you are aware of your interest rate, length of payment term, warranty (if offered) and penalty fees. The dealer will provide and handle your motor vehicle paperwork along with temporary registration and license plates.


 

Warranty Information:

Does Your Buy Here Pay Here Dealer offer Warranties?

Does Your the Manufacturer of your Used Vehicle offer Extended Warranties?

What Are the Terms of your Warranty?

In the same way that new cars come with a warranty, your ‘new to you’, Buy Here Pay Here vehicle can also come with the same security and peace of mind.
Think of a used car warranty as insurance against something major going wrong with the vehicle while you own it. In the same way a fender bender might cost 1,000’s of dollars to fix, a blown engine might cost around the same. A warranty is going to protect you against having to pay out of pocket for the full amount, very worthwhile if the worst happens.
Like anything, you have to read the small print and adhere to the requirements of the warranty company. For instance, they might demand that you change your oil after a certain number of miles, failure to follow these instructions can invalidate the warranty and leave you without a claim. Warranties normally ask that you provide the vehicle with the basic level of care recommended by the manufacturer 
An extended warranty is really an extended service contract, that covers the cost of certain repairs and problems after the factory warranty expires.
Check Existing Warranty
Before you consider an extended warranty, take a close look at your car's original warranty. How much coverage is left? One year? Two years? A thousand miles? Ten thousand miles?
Many auto manufacturers now offer warranties above and beyond the once standard three-year or 36,000 miles protection.
New cars from Acura, BMW, Cadillac, Volvo, Saab, Mercedes, Lincoln, Lexus and Jaguar are sold with four-year or 50,000-mile warranties. Cars from Infiniti have four-year or 60,000-mile warranties.
Kia and Hyundai offer five-year or 60,000-mile warranties on new vehicles, plus 10-year/100,000 miles power train warranties, which cover engine and transmission repairs.
Many but not all factory warranties get transferred to used-car buyers at the time of purchase. So be sure to check.
Did you pay a little extra and buy a used vehicle that's been certified by the auto manufacturer? If so, you picked up some additional warranty protection on your used car, truck or SUV.
In the past few years, several major manufacturers including Honda, Lincoln, Ford, Mercury, Volkswagen, Volvo and Audi have pumped up the warranty protections on certified vehicles.
Most luxury brands offer two years of additional warranty to certified used-car buyers. Other programs offer an additional warranty, for example  12 months or 12,000 miles (whichever is sooner) after the new-car warranty expires.
Once you determine just how much warranty is left on your used vehicle, you'll need to think about how long you plan on keeping the car.

 

 

How it all works

What is Buy Here Pay Here?

How do Buy Here Pay Here Dealers arrange your financing?

How will you pay your Buy Here Pay Here Dealer?

 

On lot financing is often referred to as Buy Here Pay Here, or many other names such as secondary financing, dealer financing and more. Whichever name your local dealer calls it, the way that this type of financing works very rarely differs.
Buy Here Pay Here dealers will finance the vehicles themselves rather than going to an external bank or financial institution. As a result, they take a very different view on your past credit history and are more willing to enter into a contract with stable customers who have a low beacon/credit scores.
Normally customers will pay a down payment on a vehicle and then arrange a weekly bi-weekly or monthly (depending on how you are paid) payment, with the dealer until the balance of the vehicle is paid off.
Depending on the dealer you will have a variety of ways to make your payments, from in person at the store, over the telephone or through their website.
Typically the interest rate from a Buy Here Pay Here dealer is going to be higher than that of a high street lender. This is as a result of them taking the risk of you not paying them and also taking into account your bad credit situation.
This type of financing can be very useful indeed for rebuilding your credit score. Unfortunately bad things happen to good people sometimes and our credit can be affected. Many dealers will report your payments to the credit bureaus and help you rebuild your damaged credit scores.  It is a good idea to ask the dealer if they report your payments as not all of them do.


 

 

Why carlotfinance.com helps you find the best deal, hands down!

What makes carlotfinance.com different?

How does our webite work?

How do we help you find the best Used Car dealer for you?

carlotfinance.com is the only website dedicated to allowing consumers to shop multiple Buy Here Pay Here car dealers inventory in one place, in the way that they want to shop.
carlotfinance.com is the first website to allow customers to search by entering your down payment or your monthly payment amounts. Rather than showing your how much the vehicle will cost in total, we allow you to find the right vehicle which fits your current financial situation.
Our vehicles are advertised based on having one year at both your current job and residence. In addition, the pricing is based on you not having any repossessions on your credit report and you not being in bankruptcy currently.
Our unique site will allow you compare a selection of vehicles which will have the same monthly payment and down payment, showing you which one will be the best valuein your financial situation. After you have found the vehicles you are interested in you can register for the site and complete our credit questionnaire once and send to multiple dealers.

 


Repairing your Damaged Credit

How can carlotfinance.com help with your damaged credit?

What are other methods to help?

 

 

 

We all know bad things happen to good people, with so many factors influencing our credit scores few of us have the credit we think we deserve or had recently.

The first step to managing your credit score is to find out exactly what it is, and how and why it has been damaged. The following sites allow you to check your score out.

www.freecreditscore.com
www.creditkarma.com
www.annualcreditreport.com
www.creditsesame.com

www.carlotfinance.com is not affiliated with any of these websites and does not endorse them or their services.

If you have attempted to secure traditional financing and been turned down due to poor credit or an unfavorable debt to income ratio (essentially the amount of money you earn versus the amount of money you owe) then don’t make multiple applications as that will only damage your score further. Try and establish what the problem is first then try and rectify it. One of the best ways to do this is going to a Buy Here Pay Here dealer.

What a Buy Here Pay Here dealer does is twofold, firstly they will work with you to get you into the car you need, secondly they can help you start to rebuild your credit. Some, but not all Buy Here Pay Here dealers report your timely payments to credit agencies, and timely payments of bills is crucial to rebuilding damaged credit. It is important to note that non payment will only damage your credit further, and also potentially lead to repossession of your vehicle, which can be extremely damaging, so make sure you can afford the payments on the vehicle you select.

Here are seven easy methods which will help rebuild your credit:

Pay all your bills on or before the due date as bills constitute a large part of your credit score.
Find an account with a small balance and work on paying that off. Paying off any account can have an immediate positive affect on your score. You should be able to find the information for contacting your creditors right on your credit report, speak to them and see if you can arrange a settlement, which will allow you to clear the debt for a smaller amount than you owe, the worst they can say is no.
Any accounts that are in arrears can affect your score, if you can’t get all your accounts up to date then consider talking to a credit counselor or debt management agency.
If you have Credit Cards pay them off every month, credit agencies look for accounts with available credit and zero balances. Consider just putting gas for your car or your grocery shopping on a card and paying for that monthly instead of every few days or week.
If you see any errors on your credit report then ask to have them removed, using the contact information provided. The worst anyone can say is no.
Don’t try and shift things around to hide them, it doesn’t work. Instead, consider switching accounts to a new one with a lower interest rate as that will make payments easier and ensure that more of your payment goes toward paying down your debt rather than interest. If you decide to go and see a credit counselor or debt management agency this is another thing to discuss with them.
You should definitely ask any Buy Here Pay Here dealer if they report your payments to credit agencies. If it’s possible purchase your car at one that does and make your payments on time. Crown Auto Sales does offer this service.
If you can try and pay a little more than your monthly payment, even if it’s only five or ten dollars. There is no penalty for prepayment of auto loans and all extra payments go directly toward the principal of your loan, reducing the amount of debt you carry and improving your debt to income ratio.