Posted on April 24, 2024 by Rick Griffith

If you’ve ever bought a used car from a buy here pay here (BHPH) dealership, you know the responsibilities and rewards of on-time payments. But have you ever wondered how you can successfully repay that car loan? In today’s blog, we’ll discuss three ways to set you up for successfully repaying a buy here pay here car loan.

Benefits of Successfully Repaying Your Car Loan

Successful repayment of your car loan can provide several benefits. First and foremost, congratulations on taking the first step to repairing your credit history. Next is knowing that working with a reputable BHPH dealership can improve your credit score, as they will report your regular on-time payments, which will help repair your credit.

A car loan successfully paid off will improve your credit score. Therefore, being a responsible borrower means repaying your debts on time and demonstrating trustworthiness to future lenders. That can make it easier for you to secure favorable interest rates and loan terms in the future.

Three Effective Repayment Strategies

Here are three effective strategies to successfully repay your car loan:

1. Get to Know Your BHPH Dealership Account Manager
2. Round Your Car Payment to the Nearest Hundred
3. Use Unexpected Windfalls

1. Get to Know Your BHPH Dealership Account Manager

Learning to manage your money is an important life lesson that we all should embrace at some point. Otherwise, our money will run us rather than us managing our money. One way of managing your finances better is getting to know your BHPH dealership account manager.

From the beginning, your account manager will develop a payment plan based on your employer’s payroll cycle and your pay rate. Whether your employer pays you weekly, bi-weekly, semi-monthly, or once monthly, your account manager will create a payment schedule that ensures you always have the funds to make regular, on-time payments.

If you encounter financial hardship, your first call should be to your account manager at the dealership, who will help you come up with a plan to get back on track. It’s a critical step to remember, calling your account manager—a trusted person at the BHPH dealership—who will help you create a financial payment plan that guarantees you will:

• Successfully Repay Your Car Loan
• Get You Caught Up on any Late Payments
• Help You Figure Out a New Payment Schedule

2. Round Your Car Payment to the Nearest Hundred

Whenever possible, round up your car payment to the nearest hundred to help repay your loan. For example, if your current repayment schedule is a bi-weekly payment of $194.13, round your payment amount up to $200. That’s only an additional $5.87 out-of-pocket.

If that’s not possible, try rounding to the nearest ten dollars. For instance, if you have a weekly payment amount of $83.24, increasing it by $6.76 to pay $90.00 each week will help lower your principal balance faster. Paying more each month decreases the amount of interest that accrues, but you’ll also shorten the loan term.

3. Use Unexpected Windfalls

Windfalls are any income you receive from an unexpected source, such as a tax refund or an employer bonus, which can be applied toward your car loan, reducing its balance. As you repay your loan, a significant portion of your payment will go toward the principal, resulting in successfully paying off your loan.

Used-Car Buying Solutions

Car Credit is a BHPH dealership in southwest Missouri that provides direct loans to borrowers through its in-house approval process.

As the premier BHPH dealership, Car Credit of Joplin, MO, provides lending options for customers with less-than-perfect credit scores. Taking into account each customer’s unique financial situation, the team evaluates your financial history as a whole rather than solely relying on your credit score to measure your creditworthiness.

To begin, browse our wide range of cars and SUVs, then submit your online credit application! The team at Car Credit will work with you to extend the funds necessary to get you into an extensively reconditioned, safe, and reliable vehicles.