Two ways to buy a car with damaged credit — and which one we do
If your credit is bruised, "buy here pay here" is often the first thing a search turns up. Here is how it works, how it differs from getting a loan through an outside lender, and what we do. The short version: Friendly Motor Group is not a buy-here-pay-here dealership — we arrange financing through outside lending partners.
| Buy here pay here | Financing through a lender (what we do) | |
|---|---|---|
| Who lends the money | The dealership itself | A bank, credit union or finance company |
| Builds your credit? | Only if the dealer reports payments to the credit bureaus — many do not, so ask | Reports as a normal auto loan, so on-time payments help rebuild your file |
| Where you pay | Often directly to the dealership, sometimes weekly or every two weeks | To the lender, usually monthly |
| Interest rate | Often higher, because the dealer carries all of the risk | Depends on your credit, income and down payment — and lenders compete for the loan |
| Approval looks at | Mostly income and ability to pay the dealer | Income, time on the job, down payment and the vehicle, as well as your credit history |
Buy here pay here can approve someone no lender will. But if a lender does say yes, you usually get a loan that builds your credit and a wider choice of vehicles. That is why it is worth applying with lenders first — even if you have been turned down before, because lenders weigh far more than the score.
No. We arrange financing through outside lending partners — banks, credit unions and finance companies that work with bad credit, no credit and first-time buyers. We do not lend the money ourselves.
Often, yes. Lenders that specialise in damaged credit weigh income, time on the job and down payment alongside the score, so many people who assume buy here pay here is their only option are approved elsewhere. Apply online — most people hear back the same day.
Only if the dealership reports your payments to the credit bureaus, and many do not — ask before you sign. A loan through an outside lender reports as a normal auto loan, so every on-time payment helps rebuild your file.
No. If you were searching for buy here pay here because of bad credit, apply with us: our lending partners work with past repossessions, bankruptcy, collections and first-time buyers with no credit history.
