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mizzhollywood26
Guest
...refinance with another bank? like if you buy a car from there and use their bank. can you refinance with a regular bank a yr. later?
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If you buy a car from one of those "buy here, pay here" lots, can you...
S
Sambo
Guest
Only if you can find a bank that will loan on a vehicle that old and in that shape.
BHPH lots are in the business to sell to people that can't get financing anywhere. They sell older vehicles, usually junk but every now and then you will find a quality vehicle, then sell them for 3x or 4x what they have in them. Rather than charge interest, they jack up the price. As a rule of thumb, they ask for a down payment that is about what they put into the vehicle to recoup their investment. Then the payments are pure profit. If you have cash, ask the dealer how much he will take for the car as a cash purchase because it will be a lot less. BHPH lots tend to get a bad reputation, but then again, they often sell to untrustworthy customers who never pay.
While financing at a BHPH lot will not show on your credit report, many banks and finance companies will accept them as a credit reference. There are some national chain BHPH lots that will show on your credit (like Ugly Duckling, Drive-Time, etc.) and some franchise dealers who own BHPH lots and use those customers who pay good to upgrade to traditional financing later.
BHPH lots are in the business to sell to people that can't get financing anywhere. They sell older vehicles, usually junk but every now and then you will find a quality vehicle, then sell them for 3x or 4x what they have in them. Rather than charge interest, they jack up the price. As a rule of thumb, they ask for a down payment that is about what they put into the vehicle to recoup their investment. Then the payments are pure profit. If you have cash, ask the dealer how much he will take for the car as a cash purchase because it will be a lot less. BHPH lots tend to get a bad reputation, but then again, they often sell to untrustworthy customers who never pay.
While financing at a BHPH lot will not show on your credit report, many banks and finance companies will accept them as a credit reference. There are some national chain BHPH lots that will show on your credit (like Ugly Duckling, Drive-Time, etc.) and some franchise dealers who own BHPH lots and use those customers who pay good to upgrade to traditional financing later.
C
Crox Trader
Guest
Unless you signed a contract that doesn't allow you to pay it off early you should be able to and if you have credit to do so you'll probably come out way ahead. Years ago it was common for loans, especially mortgages, to have an early payoff penalty. The car dealer should be required to disclose all this info to you. If you own a home, consider paying it off with your home equity loan as that interest is tax-deductible and rates are in the 5-6% range.
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myredneck g
Guest
Heres the issue. If you have to finance with one of those types of lots, you are probably not going to get your credit score up high enough for a bank refinance in one year. The other problem is that you need to look into mileage and year requirements. The guidelines for refinancing a used car are pretty strict. Most banks are gonna require a credit score above 700 and the car must have less than 100,000 miles and be less than 5 years old for refinance. Do your homework first.
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myredneck g
Guest
Heres the issue. If you have to finance with one of those types of lots, you are probably not going to get your credit score up high enough for a bank refinance in one year. The other problem is that you need to look into mileage and year requirements. The guidelines for refinancing a used car are pretty strict. Most banks are gonna require a credit score above 700 and the car must have less than 100,000 miles and be less than 5 years old for refinance. Do your homework first.