What is a Buy Here Pay Here Dealer

The main purpose of the Buy Here Pay Here (BHPH) automobile dealership is to cater the buyer that has bad credit and even those with terrible credit. Their typical customers are unable to get auto loans conventionally because of their poor credit standing so these BHPH dealerships offer in house financing so practically anyone can buy and finance a vehicle regardless of their credit score. The car lot or dealer not only sells the vehicle, but also act as the lender and finances the purchase. The buyer makes their payments to the selling dealer on a weekly or bi-weekly schedule that usually correlates with the pay period of the buyers/borrowers job.  This way the payments are smaller and they are due on the same or next day that they get paid from their employer.

The Offerings of BHPH Car Dealerships

The inventory and selection of vehicles offered by the Buy Here Pay Here lot typically consist of used vehicles that often have high miles. These are not necessarily bad or junk cars, but they are less costly and this limits the amount of risk that is taken on by the owner of the dealership. They are financing people with credit problems and they want to reduce their exposure as much as possible. Repossessing and taking back cars from their customers that don’t fulfill their part of the installment agreement is not uncommon. In fact this is a very costly part of operating a BHPH establishment. Many of these dealers also offer extended warranties on the vehicles they sell and finance which is very good idea because nobody wants to make payments on a car that is broken down or inoperable. These warranties are sometimes included in the price of the vehicle or added into the payments which is a source of additional income for the dealer, but depending on how you look at it, this could a win/win for both parties.

Buy Here Pay Here Caveats

Doing business with a buy here pay here car dealer is not for everyone, but if you need a vehicle and your have bad credit then this might be your only choice. When I say bad credit I mean real bad credit, because there are many dealers that work with sub-prime auto lenders and finance companies that will be able to finance people with less than great credit, but only if the dealer has an association or relationship with these types of lenders. So choosing the best dealer for your particular situation is important. Buying and financing a vehicle though a dealer that has in house financing can be quite costly, but that is to be expected when you need to finance and you have terrible credit. In most cases you are paying more for the car than it is worth, you will be paying a high interest rate for your vehicle and you are often expected to make your payments in person at the dealership.

A word to the wise is sufficient, but sometimes you don’t have too many choices when you need an automobile to get to work and do what needs to be done every day. Sometimes people need a second chance when it comes to financing a vehicle and that is where this type of dealer comes in to play. Yes, there are perils and pitfalls of buy here pay here car dealers, but that may be the best answer when your financial situation calls for a solution to your transportation needs. Choose from a wide range of new and used cars for sale online at www.motors.co.uk and find fantastic deals on your dream car in your local area or nationwide from private sellers to trade dealers.

You can get approved before going to the dealer just get approved first!

Who is Certifying the Vehicle?

You know that it’s a pre-owned or used car because it is not brand new so you don’t need to be told that it’s a used car that’s obvious. What I am referring to is the practice of used car dealers buying an extended warranty for a vehicle and slapping a “Certified” sticker on the windshield and then calling it a “Certified Pre-Owned” car.  A true certified car can only be certified by the manufacturer and not by anybody that buys a warranty and a window sticker. You can only buy a real certified pre-owned car from a dealership that sells the same brand of car brand new and there are no car dealer fees for a true certified car. So you can see that this is an important question to ask when buying a Certified Pre-Owned vehicle.

What Makes it a Certified Pre-Owned Vehicle?

When a car, truck or SUV is truly manufacturer certified it is required to go through a process of inspection and performing the required servicing and repairs along with researching any previous recalls or issues that the make and model may have and correcting them according to manufacturer specifications. An authentic certified pre-owned car is warranted by the manufacturer therefore all of the work, inspections and repairs must be done by a dealership and technician that is approved by the automobile manufacturer. You may even run across a new car dealership that will sell a used car as a certified car, but it may not be certified buy the auto maker and it is really no more than a used car with a third party warranty rather a manufacturer backed warranty. That is why it is critical to know the answers to the questions to ask when buying a certified pre-owned car.

Can All Used Cars Become Certified Pre-Owned Cars?

The simple answer to that question to ask when buying a certified pre-owned car is no. Only used cars that meet certain requirements can become certified cars. Those requirements restrict the amount of miles a car has and the age of the vehicle along with a clean history report. Manufacturers require that a used car history report either from CarFax or AutoCheck depending on the auto maker be included in the certification process and free of major accidents or title problems. A certified vehicle may have been in a accident, but it cannot be a major accident that required the vehicle to be rebuilt or overhauled. A minor accident is acceptable as long as only two or three panels were repainted and if any more work than that was done because of an accident it does not meet the car makers requirements and not able to become certified.

What is Included or Covered on a Certified Pre-Owned Car?

Buying a certified pre-owned car should include some perks or benefits besides peace of mind that you are getting a good vehicle. These benefits should include a comprehensive extended warranty for at least one year and a drive train warranty that lasts for 100,000 miles or 6, 7, or 8 years from the original in service date (whichever comes first). Many manufacturers also include a roadside assistance benefit for at least one year which can be extended by the purchaser. Another benefit of buying a certified vehicle is that most manufacturers require is that the vehicle must have all the original equipment such as floor mats, two or more keys and any factory installed options. I am sure you can see the importance of knowing the questions to ask when buying a certified pre-owned car. Therefore you don’t have to worry about a dealer removing anything from the vehicle rather than repair or replace it to reduce costs to them.

Is it Wise to Buy a Certified Pre-Owned Car?

You can see that there are benefits and cautions about buying a certified car, but if you get the right answers to the questions to ask when buying a certified pre-owned car you can make sure that you are getting a good vehicle and a major auto manufacturer to stand behind your purchase. You can’t ask for much more than that when you are buying a used car.

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Considerations When Buying a Used Car Privately

One very important point to keep in mind when you buy an automobile privately rather than from a dealership is that a dealership has a degree of responsibility for the vehicle they sell. There may not be a warranty from the car dealer, but they are responsible to the point that they can not misrepresent a vehicle or sell a car that has title problem or has any type of conflicting information. However when a private party sells a car to another person privately there is no warranty or obligation of any kind except what has been written and signed by both parties and notarized. In other words, be careful and follow these steps for buying a used car privately to protect yourself and your money.

Alright let’s get started with the best part of buying a car, and that is to look at all your possible choices and narrowing it down to just a few. There are many places where you can find used cars for sale privately. You can look through your local paper, you can look online for websites that advertise used cars for individuals and sometimes you can find that perfect car on the side of the road or in someone’s driveway with a “For Sale” sign in the window. I like to go to Yahoo Autos and look at the used cars that are for sale by individuals because they usually have a good selection.

Once you find that special used car that catches your eye you need to give the seller a call and ask some questions about the vehicle. You will want to ask them about the selling or asking price, the mileage, the overall condition, history of the car and my personal favorite, “why are you selling the car”. If you were satisfied with the answers you have received the next step to buying a used car privately is to meet the seller and look the car over in person. Be careful with this step, because you don’t want to be going to unsafe or dangerous neighborhoods in order to see the car. I recommend that you do not go alone and that you only go in the daylight hours to areas where you feel comfortable. Your safety is more important than any used car.

Private Party Used Car Inspection and Test Drive

The next used car buying step is to look the car over closely. We have a used car buying checklist that can help you make sure you don’t leave anything out during your inspection. Take your time because the time you spend going over the vehicle now can save you a bundle later. If the private party used car seller tries to rush you or makes you feel like they are being put out you may want to pass on the car. Sometimes when people that sell used cars privately may be selling it themselves because there is a problem with the vehicle and the car dealer will not give them what they owe because of the problem.

Now it’s time for the test drive. This is where it all comes together if you are familiar with the inner workings of an automobile. We have used car buying checklist that covers the fine points of test driving a used car and what to look for and listen for when your look it over. If you are not knowledgeable about cars and the inner workings it would be a good idea to bring a friend that could help insect the vehicle or ask the seller if you can have a mechanic check it over. Buying a used car privately can be taking a big risk because there will not be any warranty and you can’t change your mind and return a car to the seller, which is part of the used car buying basics.

Now that you have inspected the used car and taken it for a test drive and everything is satisfactory so far the next step is to research the history. Your best defense against any type of car scam when buying a used car privately is to get a vehicle history report. A vehicle history report can provide you with a great deal of information about a used car. It will show how many owners the car has had, remaining factory warranty, outstanding recalls, if there were any major accidents, if the car was ever in a flood or in the car was stolen and never recovered. The few bucks it cost to get a history report can potentially save you a fortune and avoid a lot of headaches. I prefer AutoCheck because they are very thorough and the price is usually a little cheaper than the competitors. I would never buy a used car from a private party or a car dealer without seeing the vehicle history report.

The next step to buying a used car privately is to work out the selling price. Private car sellers typically ask a higher price than they are willing to accept for the vehicle so it’s time for a little negotiation. Based on your inspection and test drive you need to decide how much you are will to pay whether it is their asking price or something lower. Remember, it’s just business. You are the buyer and they are the seller, there is no need to insult the buyer, but you must feel comfortable with your offer and hopefully the both of you can come to a mutual agreement of the selling price of the vehicle.

This final step for buying a used car from a private party is do the paperwork and pay the seller. You want to make sure the seller has the title and that both of you fill out a bill of sale. The paperwork must include the full names of both buyer and seller along with addresses, phone numbers and signatures. The document must include the date, the selling price and any other terms or conditions to which both parties agree. Then pay the seller and drive your new car to the Department of Motor Vehicles or to the police department depending upon the process in your state. Some states require the police department to check the vehicle identification number before the DMV will license the vehicle. Keep in mind that your state DMV will also charge you a sales tax or flat tax based on the year of the vehicle. You can find this out buy calling your local D.M.V.

There you go, we just went through the steps to buying a used car privately. You can see there is a little more for you to do because there is not a dealership involved. If you are willing to do that little extra and take the risk you can save a great deal of money when you buy a used car from a private party.

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Used Car Buying Mindset

Get yourself in the right frame off mind when you are buying a used car because you are buying something someone else bought brand new and chose to trade-in to get a better car. People trade-in or get rid of cars for many different reasons, maybe they wanted a new more stylish car or they have been spending too much on repairs and decided it was time for a new vehicle. You will never be sure to the best thing to do is take the used car that catches your eye for a thorough test drive before making any decisions.

Checklist for Used Car Buying

Most people don’t buy a used car several times a month so no matter how good you think you can remember every thing to check a used car buying checklist is a good idea. There are many factors to consider and a checklist will you keep you from skipping over any of the important points. A list of items to consider and inspect during a test drive will help you be more objective and avoid the possibility of any car dealer scams or making an emotional decision rather than a logical car buying decision.

Used Car Buying and Weather Conditions

Many cars can handle very differently than expected in different weather conditions so make sure you take that into consideration. Obviously you can’t drive a used car in the snow in the middle of the summer or in the rain on a sunny day, but you can look the car over and imagine some of the things that you can expect in different weather conditions. One example might be ground clearance if you often find your self traveling in heavy snow conditions. In this example it might make sense for you to select a front wheel drive car rather that rear wheel drive. Try to picture driving the vehicle of choice driving in the different weather conditions that you encounter in your travels.

Driving a Used Car on Various Road Types

If you are buying a used car to be your daily driver or soul source of transportation it would be wise to test drive the vehicle on the same types of roads that you travel. If you regularly drive on the highway a test drive that consists of driving near the dealership on city roads will not be a good indicator of what you can expect if you buy the car. Be sure to drive in every type of road than you normally travel so you can evaluate every part of the vehicle and also use it to compare against you old car.

Some dealerships require the sales person to go with you for a test drive and if that is the case let them know where you want to drive the car. Often times car salesman will have a route they often take for test drives that avoids extreme conditions so the vehicle shows better, but you want all kinds of conditions. You want to check the acceleration, steering, braking and you want to do it with more vigor than you normally would because you are testing the car you might purchase. If you are dealing with a reputable dealer and not driving dangerously the salesman should not have a problem with your thorough test drive.

Used Car Interior Operation and Dashboard

During the course of your test drive keep an eye on the dash and gauges. Make sure they all seem to be working properly and the indicators for the turn signals work as designed. Check them in different driving conditions also, such as during fast acceleration, sharp turns or hard braking. Make sure that the interior lights are working and they go on and off when the doors open and close. Do the dash lights work properly and do the y dim and brighten. Any kind off electrical problem can be very costly to repair so it is a good idea to avoid them when buying a used car.

Used Car Visibility

Get in the used car you are considering and adjust the seat to a comfortable position and then take a look around. Make sure that you can see clearly in all directions while checking for any potential blind spots. All cars have potential blind spots depending on the driver. Make that your vision is not hampered in any way as you go through a normal driving routine. Consider the view when parking, backing up, passing, changing lanes and at night. Check the rear view mirrors and side view mirrors both for visibility and if they are power mirrors they should work properly. Turn on the windshield wipers and washers to make sure they will operate when you need them.

Used Car Drivability and Handling

While test driving the used vehicle you should make note of the steering and responsiveness. Is the steering wheel sloppy or does the car respond well with a small turn of the wheel? Then drive on a bumpy road or over railroad tracks and notice whether the steering changes or if it maintains control of the car. Does the car bounce excessively or does it recover well from large bumps in the road? Drive down the highway and ask yourself if the ride is smooth or rough. Would you be comfortable on a long trip driving this used car? These are examples of car buying questions you should ask yourself when you are test driving a used car.

These are some of the many things you need to consider when taking a used car for a test drive. First and foremost you should feel good about the performance of a used car before you worry about the styling color and other aesthetics.

Take our Used Car Buying Checklist with you when you inspect a used car you are considering and read the Used Car Buying Basics post.

Research for Used Car Deals

The Internet is one of the first places to head before you start going from car dealer to car dealer. You can get used car ratings, reviews, availability and even the average value of specific used cars. This is the kind of information you will need to make sure you are getting a used car deal or overpaying for your favorite car. They are many places of the web to get honest, reliable and unbiased information when it comes to used cars. Fire up your computer and go to Yahoo! Autos (opens in new window) for all the information you will need pertaining to a car you might be considering.

Great Used Car Deals from the Private Seller

There are many great used car deals to be had from private sellers, but you still need to know what you are buying. Do your research first and then thoroughly inspect the car and take a full range test drive to be sure of what you are buying. What seems like a great used car deal might not be what you expected. If you have done your research and completed a thorough inspection you will be better equipped to negotiate and make the best deal on a used car.

More People are Looking for Used Car Deals Than Ever

In fact in 2004 alone, it was recorded that half of those who bought their own cars in the US have considered purchasing used cars rather than brand new ones. A large part of the population is becoming more and more open to buying pre-owned cars due to their lower cost.

Buying a Used Car - Used Car Deals

This information should give you more reason to research on which car dealers or private parties are offering the most desired used cars on the internet.

Since used cars are getting more popular it makes sense to look for details, specifications, personal requirements, vehicle history reports, realistic pricing reports and a full range of values for used cars. The more you know about used cars and the pricing the better you chances of not becoming the victim of car dealer scams or even private party scams.

Used Car Deals or Not – Check the Reviews

A good used car dealership will offer accurate and honest advice and reviews for prospective car buyers. Reviews provide you with information regarding the reliability and cost of ownership.

Some will even provide true-cost-to-own values in order to better prepare you for the cost of the transaction. Many even dispense incentives and rebates for used car buyers and those who opt for deduction on certain car payment methods for easy money transactions.

The majority of used car dealer networks across the internet provide search listings to better approximate your location and needs. Search listings would provide you a roster detailing the latest used car models on sale together with their descriptions, vehicle condition, history reports and cosmetic essentials and requirements.

Although most accept trade-ins, some assess additional charges for appraisal, and the value-assessment might fall lower than you expected. These is an area where many people can become the victim of car dealer scams and fall prey to unscrupulous used car dealers. Do your home work and be careful. The more information you have the better your chances of getting a used car deal.

If you’re looking for a good deal on a used car do your research. One of the first places I recommend you visit is Yahoo! Autos you can search for dealers in your area that have the car you want to drive home and make sure you use the used car buying checklist and inspection sheet.

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If you feel purchasing a new car is tricky, then buying a used car can be even harder. But don’t worry, at least not yet–with these guidelines to keep you on track, that used car could be one of the best deals you’ve ever had.

Where to Look When Buying a Used Car

Buying a Used Car - The Basics

Look around, it pays to be on the lookout for owners wanting to change to a newer model, and wanting to sell the car of your dreams or at least a good deal and not get stuck by a car dealer scam. This is where your friends and family can come in handy. Aside from referrals, they could more or less ensure that the price is reasonable and the car’s ownership history is satisfactory when buying a used car.

Asking the Right Questions When Buying a Used Car

Why are the owners selling the car? Make sure that they are not selling their used car due to any major problems.
How long have they owned the car? Given proper maintenance, a five to seven year-old car would generally be in good condition. What repairs have been done, or are currently needed? How’s the mileage? The lower the mileage, the better. However, a used car with more miles could be satisfactory, too. In this case, ask about the vehicle’s use. Was it a family car limited to city driving? Does the car come with a balance of manufacturer warranty? (when buying a used car there could be some warranty left, ask)

When Buying a Used Car Take Note of the following:

Body rust or holes are difficult to repair. A body panel rusting through is to be replaced. Different paint shades from one panel to another, peeling and cracked paint, or smudges on other car part indicates a poor re-paint job, which needs to be re-done. Threadbare tires, chipped or cracked glass, the electrical work and what’s beneath the hood should be given proper attention, too.

Go Out for a Test Drive Before Buying a Used Car

If it’s a manual car, the clutch shouldn’t slip. If the clutch slips, instead of being steady as it accelerates, the motor will be revved up as when using neutral. If this happens get yourself a new clutch! Is the exhaust not chugging out excess smoke and noise? The car may need some good motor repair, or some of the exhaust system parts replaced. Do the pothole test. Overly shaky rides could indicate a suspension problem, an alignment problem and or a tire problem. Always have a trusted mechanic or a car aficionado friend to thoroughly go over the car with you before buying a used car.

The Turn Over When Buying a Used Car

The number of previous owners, registration details, applicable taxes, and insurance papers should all be properly documented. When you are buying a used car from a referral it is easier to acquire all this information and avoid car scams. With the paperwork done and the payment terms agreed upon, you’re ready to hit the road, and enjoy the ride!

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At least with new cars there is some uniformity and you don’t have to consider condition. With used cars it is a whole different story, especially when have to deal with a used car salesman. Not all used car salesman are crooks or liars but there are enough of them out there that are. That is why you want to be prepared when you start your used car shopping so you can avoid car dealer tricks and car scams.

Find the Best Used Car Dealer

5 Negotiating Tips for a Used Car:

1. Car Negotiation Tip:Comparison Shop

When you are ready to buy a used car do some shopping around. Compare different vehicles prices and miles. Don’t fall in love with the first car you see. What you need to do is shop around. You may see a car that you like even more, but the real benefit is that it will give you an idea of what the car is going to cost. This will allow you to bargain the salesman down when you do go to buy.

2. Car Negotiation Tip: Research Your Choice

Once you have a car or type of car in mind, do a little bit of research. At the bare minimum, you should know how much the car is worth for the model year you’re looking for and the life expectancy of the model year, with proper maintenance. But the more you know the better you will be able to negotiate. Having information is one of the best negotiating tips in used car purchase that anyone can give you. Go to Yahoo! Autos (opens in a new window) and check used car values so you will know what that used car is worth.

3. Car Negotiation Tip: Make Them Work for It

Do not give the car dealer anything. If you go in and for example, tell them you you’re not prepared to spend more than $5,000 what you’ll actually do is tell them you’re willing to pay $5,000. Bad move. The first person to name a number is the person who won’t get the better end of the deal.

4. Car Negotiation Tip: The Car Dealer is Not Your Friend

Car dealers are friendly, pleasant people. They are easy to like. They have to be, it’s essential to selling cars. Because of this, it’s important to remember that they are not your friend. They are there to extract the maximum amount of money possible from you. Always remember what you are there to do and that is to pay the least amount of money, for the car you want .

5. Car Negotiation Tip: You Are in Control, You Can Walk Away

This isn’t just one of the best negotiating tips in used car purchase. The ability to walk away is always your best weapon. In fact, you should probably walk away no matter what. You need to take your time and think about the purchase when the dealer isn’t breathing down your neck and going home to sleep on it is maybe the best way to do it.

But walking away is your ace in the hole, because no matter how the dealer makes you feel, you are the one in control and in charge of the negotiations. If you don’t forget that, you won’t have any problems closing the deal.

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