Guaranteed Auto Financing Through Buy Here Pay Here Used Cars Dealerships

June 2, 2014 - PRLog -- 6/02/15 - The site http://bhphcardealers.net just just announced that they have added a new blog post about guaranteed auto financing. The new page can be directly found at http://bhphcardealers.net/guaranteed-auto-financing/

The term guaranteed auto financing refers to the ability of customers to know that a given dealership has vehicles that the customers would be approved for.  Bhphcardealers.net explains how by having guaranteed auto financing, customers can feel comfortable knowing that there are many buy here pay here dealers out there who are willing to finance their vehicles even if their credit scores are too low for other lenders. They have a network of dealers that are ready to finance the customers and make the process easy.

While many traditional dealers have a variety of vehicles to choose from, this often does not translate into more sales because they often have to turn away customers because of financing obstacles.  This happens even when customers love the vehicles offered.  The customers often do not have the means to pay for the vehicles in cash nor have the acceptable criteria for third-party lenders to loan them the needed money to finance the vehicles.  Customers, that are turned down, are then disappointed, embarrassed and feel ashamed as they walk out of the traditional dealerships empty handed.

Here are the usual steps at traditional dealerships: customers search for the vehicles that they like, customers go to the dealerships and are shown the vehicles to inspect them and test drive them, customers discuss and negotiate prices, then customers sit with the financing representative to see how will they pay for the vehicles. They are asked for their documents and if the customers are deemed unfit, they are turned down and all this wasted time gets thrown away and they have to start all over at other dealerships. After several denials from several dealerships, the customers give up and beg family and friends to co-sign them so that they can be approved for financing.

Buy Here Pay Here dealers reverse the process to offer guaranteed auto financing.  First, customers are asked to fill the online form to get a ball-park estimate of where they stand financially.  The dealers are filtered to match the customers’ circumstances and only the dealers that can guarantee to pre-approve the given customers, contact back the customers with further information.  The customers hence only  head to the dealership(s) that already pre-approved them.  The customers are told which vehicles are within their pre-approved loan budget and get to inspect and test drive those vehicles. They then sit with the representative to present their proofs and negotiate price and payment arrangements.

The required down payments are different from location to location even if they are all buy here pay here dealers as they are mostly independently owned and operated.  The amount of down payment required has to do with the vehicles offered, the customers’ income amounts, as well as the seasonal incentives that each dealership would have.  However, there are dealerships that offer zero-down incentives.  But keep in mind that the registration costs and the taxes have to be paid at the closing table and are not considered part of the required down payments under most states’ laws.

Also the documents required vary from one location to another.  However, there are some main items that are needed.  These items include the customer’s photo ID, some sort of bill with proof of address that is current, and proof of income for the last couple of months.  If social security is needed, then the dealers are looking for important key pieces of information on the customer’s credit report. Although they would not need the credit score as they accept all credit scores, they often look for history of repo’s, bankruptcies, and other important items to see how much trust to give each customer. Additional documents that customers might be asked for include a letter to indicate how long was the customer employed for in the current job, their recent bank statements, and references from family and friends with their phone numbers and addresses.

For more information, please feel free to visit the site at http://bhphcardealers.net or visit the new page directly at http://bhphcardealers.net/guaranteed-auto-financing/