If you have bad credit and need a car, buy here pay here near me no credit check dealerships offer in-house financing. However, these car dealers typically don’t do a credit check and charge high interest rates, which can lead to financial trouble. In fact, more than one in three borrowers default on buy-here-pay-here loans, according to a 2019 industry report from the National Independent Automobile Dealers Association and the National Alliance of Buy Here Pay Here Dealers.

Why do consumers prefer BNPL?

Often, these dealers will ask for verification of income and proof of residence to determine whether you qualify. Then they will offer a specific vehicle on their lot that you can purchase, and you’ll make payments directly to the dealer. Some dealers also install devices on vehicles that track driving and prevent them from starting, which can help the dealer recover the vehicle if you fail to make your monthly payment.

Many lenders will work with borrowers who have bad credit, including some online lenders. You can get a loan with no credit check through some of these lenders and improve your credit over time by making on-time payments. Getting a car loan with these lenders is often cheaper and more convenient than using a buy-here-pay-here lender.

If you’re searching for a new vehicle and have bad credit, consider checking your credit scores and applying for preapproval with lenders that accept bad credit. Then, you can compare options and find the best car loan for your budget.