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[Solved] BAD situation - need to buy a car with bad credit


Topic starter

Hey Scotty, love your channel hand have found it super helpful in my search for a car.  With that being said, I thought why not ask the man himself!?  So, I have had a really rough patch financially over the past couple years.  I won't bore you with details, but suffice it to say, my credit is now terrible.  My current car just took a crap last week and I am left in the ugly position of having to finance a used vehicle in what is probably the worst market for used cars in history.  So my questions are:

A) what do you think of the 2020 honda hr-v? 

B) what advice would you give someone in my position, needing to finance a used vehicle with bad credit in this market? 

4 Answers

Try to steer clear of BHPH ("Buy Here Pay Here") used car lots that prey on people with bad credit. They sell lousy vehicles they get for next to nothing at auction and sell them at outrageously inflated prices, then charge usurious interest rates on top of that. Then they frequently wind up repo'ing and reselling the same crap car several times to other victims.

Here's the kind of vehicle you can expect to wind up with from a BHPH lot:

It's at a carmax, so not buy here pay here. But I believe they use a lot of the same banks any other car dealer does. My own bank can't give me a deal I can work with, so that's where I'm at 🤷


Don't spend 20 hours shopping for a car, and 15 minutes shopping for the loan rate. If you are eligible for a credit union (via your job, being a veteran/family of a veteran, etc.) they often give considerably better rates.


Posted by: @dlbarlow1980

It's at a carmax, so not buy here pay here.

Carmax is not the greatest thing around but it does beat a BHPH joint. (Faint praise indeed!) However if Carmax is your best bet due to your credit situation be sure to have a good mechanic thoroughly go over any vehicle you consider buying there. You don't want to make a bad situation worse with a bad car that someone dumped on them that in turn gets dumped onto you. 


I was in the same position decades ago.

In my opinion buying that new/expensive of a car is down the road.

What worked for me was purchasing a Honda Civic in good mechanical condition with a few miles/years on it that had some cosmetic flaws with the only loan I could get (Toyota Corolla probably a better choice today), busting my butt, paying the loan down early, continuing to bust my butt, continuing to properly maintain and drive the car, save money, buy another reliable Japanese car cash, maintain the car and drive it to work where I busted my butt, save money (if you can’t…work more, spend less), never pay interest again, and live happily ever after.

You can do this, but you have to take a long term approach, be willing to sacrifice, and do the work.

All the best, I believe in you.