Second Chance Car Lots in Las Vegas: What They Are and How to Pick One

"Second chance" is a label you will see on a lot of Las Vegas car lots. It sounds reassuring when your credit has taken a hit. But it is not a legal term, and two lots using it can work in completely different ways.

Here is what it usually means, the three kinds of lots that use it, and how to tell a real second chance from an expensive one.

What "second chance" usually means

A second chance dealer is one that sells to people banks usually turn away: buyers with a repossession, a bankruptcy, collections, thin credit or no credit at all. How they make that possible is the part that matters.

The three kinds of lots

1. Buy here pay here lots

The dealer is the lender. You make payments to the lot, often weekly. Approval can be easier, but interest rates and car prices tend to be higher, payments may not be reported to the credit bureaus, and some lots install tracking or shut-off devices. Read more in buy here pay here in Las Vegas.

2. Dealers who work with subprime lenders

The dealer sends your application to outside lenders that specialize in damaged credit. You pay the lender, not the lot, and most of these lenders report to the credit bureaus, so on-time payments can help you rebuild. This is how we work at Charlie Cheap Car.

3. Rent to own

You rent the car with an option to buy. Easy to get into, but usually the most expensive way to end up owning a car. See rent to own cars in Las Vegas.

Six questions to ask any second chance lot

Who is the lender: you, or an outside company?
Do you report my payments to the credit bureaus? If not, the loan will not help your credit.
What is the out-the-door price? Price plus fees plus tax, in writing. See how to figure out the out-the-door price.
What is the interest rate and the total I will repay? Not just the monthly payment.
Is there a tracking or starter-interrupt device on the car?
Can I take the car to my own mechanic before I sign?

Red flags

"Guaranteed approval" before anyone has looked at your application.
A price that only exists if you finance with the lot.
Pressure to sign today.
Blank spaces in a contract, or a deal that changes after you agree.

How we do it

Charlie Cheap Car has sold used cars on West Sahara for 25 years. We are not a buy here pay here lot. We send your application to several outside lenders, including lenders that work with repossessions, bankruptcies, no credit, ITIN and self-employed or cash income. Financing is subject to lender approval, and our dealer fees ($752.25 in total) are listed on every car.

5015 W Sahara Ave Ste 127, Las Vegas. Open seven days. (702) 471-1549. Se habla español.

General information, not financial or legal advice. Financing is subject to lender approval.