Having a bad credit rating can make life much more difficult and frustrating. There are plenty of good people that have gotten into unfortunate situations that have caused their credit score to get lowered to the point of being poor credit. A bad credit score or rating makes it difficult to get any kind of financing, but most importantly getting a car loan. Unless you are fortunate enough to be able to walk to work and the store you need a car. That is where the buy here pay here car lot comes in to play. There is a need for this kind of car dealer because many people have poor credit that has been caused by an unfortunate series of events and need cars to hold down jobs and support themselves and families because not everyone is buying new cars.
The Need For The Buy Here Pay Here Car Lot
If you are one of these people, don’t think you are alone. In fact it is estimated that over 100 million Americans have bad credit. Now that is a lot of people, almost 1/3 of the public. Even more amazing is the fact that these people that have bad credit are almost half of the car buying population. You can see buy those numbers that there really is a need for the buy here pay here car lot.
Buy Here Pay Here Car Lot May Be The Answer
So where does someone affected by severely damaged credit turn when they need a vehicle? After all it’s difficult enough trying to repair bad credit. Then throw in the fact that you can’t get a reliable car to get to work. This makes for a pretty frustrating predicament. One viable option is to go to car dealerships that have in house financing or in other words buy here pay here car lots. You need to do your research and be careful of any car dealer scams, but that goes for anywhere you buy a car.
Advantages to Buy Here Pay Here Car Lots
One of the major differences between a Buy Here Pay Here car lot and a traditional car dealer is that the car lot is both the lender and the car dealer. Most car dealers use outside sources as lenders which can make the process more difficult and time consuming. The main advantage is that when you go to the buy here pay here car lot you can buy and finance a car rather quickly in most cases. However the most important thing is being able to get a car.
In most cases the the buy here pay here car lot structures payments either weekly or every other week depending on when you get paid. So another advantage is making much smaller payments, but there are more of them. This will keep you from having to come up with a larger payment once a month and for some it is easier to manage.
When there advantages there are always disadvantages and one disadvantage is paying higher interest rates. Until you credit improves and your credit score rises you will have to pay higher interest rates for anything that you would finance. The buy here pay here car lot will charge a high rate, but it is something you have to deal with if you need a car and can’t afford to pay for it in full. The main idea is to help you out with a car loan while you start building you credit to the point that you can qualify for traditional auto loans and dealership financing.
If you need to buy a car and you have poor credit the Buy Here Pay Here car lot is probably the best choice, unless you have a friend or relative that will lend you the money. Although you can buy and finance a car with poor credit if you talk to the right people. Get approved first before talking to the dealer.