How Does a No Credit Check Car Dealership Work in Easley?
A no credit check car dealership is not a new concept in South Carolina. Family Auto has been operating in the industry for over 20 years now. But even when the concept is not new, its functioning is still unclear to many used car buyers. Does no credit check mean that the dealer will approve any amount of loan you want? Why is the interest rate payable higher than banks? How do you benefit by financing with the top buy here pay here no credit check dealer and not any other random lender? Let’s answer all these questions here.
No credit score check, but credit report still important
The first confusion that people have about no credit check car lots is that such dealers do not bother about both credit scores and reports. Unlike banks, the dealers do not base your auto loan approval on your credit score. No credit check means that irrespective of your credit score, some amount of auto loan will be approved for you. But that amount will depend on your credit report as the figure has to be something that you can afford. The credit report gives the dealer an idea about your income, present debt commitments, payment history, and more. Your loan is approved but how much is decided by how much you make per month.
High interest rates help to offset the default risk
Why do banks refuse auto loans to bad credit score holders? Because Federal regulations dictate that banks cannot take on the default risk of such borrowers. Maybe you can pay the auto loan that you are taking now, but no lender has any effective method to assure that. So, to offset the risk of default, buy here pay here used car dealerships in Easley, SC charge a high interest rate to minimize their overall exposure to bad loans. This is how the American market works but the odds are not pitted against you. You can always counterbalance the effect of high interest rates by taking a lower amount of loan, paying a high down payment, and/or keeping the credit span short.
Top dealers hand out offerings that benefit you
As it may be obvious now, both you and the dealer benefit from the no credit check auto loan transaction. You get to finance your car irrespective of your credit score and the dealer gets added revenue from the interest rate that you pay. The latter factor acts as an extra motive to sell you a used car. And in a competitive market, that typically transforms into lucrative deals. Take Family Auto for example. Buy here pay here financing is easy here. You get access to our massive inventory where we are bound to have the used car of your liking. We give you a flat 2-year/36,000 miles warranty on any vehicle that you purchase from us and we hand out referral money every time you refer a family or friend to us. This is how our no credit check car dealership works. Helping you with auto financing and much more.
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