Buy Now Pay Later for Cars: Can You Finance a Vehicle With BNPL?
Can you buy a car using buy now pay later? It’s more complex than using BNPL for electronics or clothing, but there are legitimate options for financing a vehicle with bad credit or no credit history.
Traditional BNPL vs. Auto Financing
Apps like Afterpay and Klarna are designed for retail purchases under $5,000 — not $15,000 vehicles. For car purchases, you need auto-specific financing options. However, some BNPL principles apply: soft credit pulls, income verification, and flexible payment terms.
| Option | Credit Check |
| Buy Here Pay Here dealers | Minimal or none |
| DriveTime | Yes (bad credit OK) |
| Carvana | Yes (550+ score) |
| Capital One Auto Finance | Yes (500+) |
| Credit Acceptance Corp | Yes (bad credit) |
Buy Here Pay Here: The Closest to BNPL for Cars
Buy Here Pay Here (BHPH) dealerships offer true in-house financing with minimal or no credit checks. You negotiate the car price and payment plan directly with the dealership. Payments are often weekly or biweekly, similar to rent-to-own. Down payments are usually $500-$2,000.
The downsides: BHPH dealers often charge above-retail prices and high interest rates (18-29% APR). Still, for someone who genuinely can’t get financed elsewhere, it’s a way to get into a vehicle and build an auto payment history.
Online Auto Lenders for Bad Credit
Carvana and DriveTime are online dealerships that specialize in bad credit auto financing. Carvana typically requires a 550+ score. DriveTime has flexible terms and approves most applicants. Both report payments to credit bureaus, which helps build your credit profile.
Need a car with bad credit? See all financing options available.