Buy Here, Pay Here Car Dealers
Buy here pay here car lots are becoming increasingly more common, which may leave you wondering what exactly they are and how they are different than regular car dealerships. More importantly, you may be wondering if you need to know about buy here pay here car dealers.
The answer to that is a resounding, unambiguous probably. If you’re looking to trade in an old car that normal car lots won’t take, then you should know. If your credit has been slapped around and beaten up by the current economy, then you should. If you’re looking to get a car on your terms, then you probably should.
Buy here pay here car lots are different from most regular car lots; in that they handle the financing on their own. There isn’t a hard and fast divider between this and regular car lots, but the traditional method is that you need to work with banks or another third party to get financing for your purchase.
At buy here pay here car lots, the financing is arranged in house, usually through the dealership themselves. You work out the financing with the dealership, and you make the payments directly to the car lot. The advantage of this is that it allows the car company to be flexible about who they deal with in ways that a bank generally will not. However there will be a high interest rate.
Many traditional car lots now offer something similar, since buy here pay here car lots, which are the fastest growing type of lot, have become so popular. They generally don’t call it buy here, pay here, but they will say something like ‘we finance’ or other lingo.
While this does allow flexibility, there is a downside, which is that they will typically charge you higher interest rates than you would get from a bank. The lots are willing to take additional risk, so they are demanding additional reward in the form of a big commission.
That said, this isn’t necessarily a bad thing. If you are having trouble getting a car loan, then the option of paying more interest versus not having a car is a pretty acceptable bargain. Generally, these kinds of dealerships are ideal if you have damaged credit or little money, but watch out for a scam.
The buying experience tends to be different at buy here pay here car lots, dictated by how much you can afford rather than looking for the car you want. The dealer will sit down with you and talk about your finances and credit, and possibly run a credit report, and then sit down with you to figure out much payment you can afford and are willing to pay.
Once you’ve done that, then you look through the inventory to find a car you like. The cars at these lots tend to be older, less expensive models. This also means they are better at seeing the value of trade-ins, that other car lots might not be inclined to take on.
If you’re looking for maximum flexibility and your credit isn’t the best, buy here pay here car lots are an ideal choice. In addition to helping you get the car you need, this can also help you to build your credit, making future purchases easier. If you need to raise your credit score Click Here NOW! and Do It Yourself.