Buy Here Pay Here car lots are often used by car shoppers who have been rejected for car loans by traditional lenders or dealerships. Auto dealers that advertise BHPH in house financing, generally grant credit from the dealership itself, not an outside finance company. Once approved, this in-house financing credit can be used to buy a vehicle from the same dealer’s current inventory.

Car payment options can be quite limited, with cash or check accepted either weekly or twice-monthly. In many cases, dealers may not accept a monthly payment like a traditional dealer.

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If you are searching the net looking for the nearest rent to own car dealer in the triangle area, you might as well take a break.  It seems that the rent to own car model is not yet legal in the state of North Carolina.  Three is no established rent to own law in the state, making the rent to own car business a risky proposition for local used car dealers.

So what does one do when bad credit prevents the purchase and financing of a used car?

Try the buy here pay here model.  There are plenty of these type of used car dealers throughout the triangle area.  You should have no problem finding one near you.

Best bet, try a free online matching service and save yourself the hassle of calling several dealers looking for someone interested in your business. Let them come to you.

Forget about rent to own cars in the Triangle area!

Lending criteria have changed during the past two years making it a bit tougher for customers to obtain financing for homes or vehicles.  If you have bad credit and you are looking to get financed for the purchase of a new or used vehicle you should take a minute to review what lenders currently look for in an applicant.

Below are minimum requirements for a bad credit car loan approval in today’s market:

• Minimum Income: Minimum of $1,900-$2,000  (Buy Here Pay Here lots and Rent to Own car dealers will typically have lower income requirements)
• Bankruptcy: The 341 meeting of creditors must be completed before you can be approved following Chapter 7 Bankruptcy.  For Chapter 13, an Authorization to Incur Debt is required from the trustee before approval can be completed
• Repossession: No repo’s within the last year unless it was included as part of a bankruptcy filing.
• Credit Scores: Most mainstream lenders and dealers will work with credit scores above 600, though many Buy Here Pay Here Dealers and Rent to Own dealers may not run a credit check.

Yes, it is a bit tougher to get approved for car loans in our new economy, but it is not impossible. Don’t let tougher credit guidelines scare you away.