Let’s be real bad credit sucks, it doesn’t mean that you lose out on the opportunity to buy a solid car. In Memphis, there are a lot of car lots that deal with buyers of all credit situations. Whether your score is in the 500 or if you’ve got a recent poll on your history, you’re not out of options. The best way to find the best car lots in Memphis for bad credit.
This guy will show you how to spot the right dealership, avoid shady ones and improve your odds of getting approved without getting ripped off.
Why Memphis is a solid spot for buyers with bad credit
Unlike other cities or some cities with the dealership seen us thin, Memphis has a good number of local car lots that specialize in bad credit financing. And the good ones don’t just say everyone gets approved without a plan. They actually work with lenders and in-house programs that can make it happen.
What does that mean for you?
- Lower down payment options
- Flexible, credit requirements
- Weekly and biweekly payment plans
- Some even offer post bankruptcy financing
If you’re told no or have ever been told by the bank or a big dealer, this city will still have their doors open for you.
What makes a car lot good for bad credit buyers
Not every buyer pay here, that is created equal. Here’s what to look for.
Actual credit flexibility
Do you wanna deal with that either offers in-house financing or works with subprime wonders. If they only run you through a bank or credit union your chances are slim.
Transparent terms
You should know your interest rate, monthly payment, total loan amount, and what happens if you’re late. No surprises.
Decent cars on the lot
Cause your credit is rough doesn’t mean you shouldn’t be stuck in a high mileage junker. Look for a lot with the vehicles under 100,000 miles and a clean Carfax report.
Simple approval process
If they need everything, but your blood type move on. A legit lot will get you preapproved with just your proof of income, residency, and a valid license.
What you’ll need to bring
Bad credit or not, dealers want to see if you’re stable and capable of making payments. Here’s what you’ll likely need.
- Government issued photo ID
- Proof of income, such as a paycheck, bank deposit disability letter SSI
- Proof of residency like your name on a lease or a utility bill
- Down payment this is anywhere between $500 for $1500 usually
- References two or three personal or professional contacts
Tips to boost your chances of app
Even the most friendly car lot still want to see if you’re serious. Here’s some ways to make your way to be a stronger applicant.
Have your documents in order
Walk in with everything in your hand shows that you’re organized and motivated dealers will notice this.
Be honest about your credit
Lying about your credit history waste everybody’s time. Be upfront they’ve seen worse.
Know what you can afford
Use a car loan calculator. Don’t commit to a $500 month if your budget is only 350. Go for a car they get you where you need to go without choking your paycheck.
Start with pre-approval
A softball preapproval let you know where you qualify without taking your score further. Some Memphis dealers even let you do this online or even over the phone.
Red flags to watch out for
There’s good credit financing and then there’s predatory nonsense. Steer clear if you see.
- No written breakdowns of the loan terms
- Everyone gets approved with no income verification
- Cars priced 40 to 60% of book value
- High-pressure sales tactics or rushed paperwork
- Rebuild titles or no disclosures
If something feels off, trust your feeling. There’s too many dealers in Memphis to waste your time getting screwed by bad ones.
The truth about by here pay here lots
Buy here pay here dealerships often get a bad rep, but many of them I lifeline two people with no other option. Yes the interest rates are higher, but you are paying for access to credit when traditional lenders won’t touch you.
Know what you’re getting into
- They’re paying more and interest.
- You’ll likely be on a shorter loan term.
- Some required payments weekly or biweekly.
- Miss Payment is equal to fast repossession.
Bottom line by here pay here isn’t evil. It’s just strict. If you communicate and pay on time, it can help rebuild your credit and get you back on track.
Final thoughts
You’re not the first person in the car shop with bad credit, and you won’t be the last. Memphis has many salad options if you know where to look, and you don’t have to settle for junk or shady deals just cause your credit score is under 600. Use the info. Bring your paperwork, ask the right questions. And don’t fall pressure to sales or false promises and most importantly don’t wait.
If you’re in need of a car and you’re ready to take the next step, hit the button below.