Financing a vehicle can be a struggle. With so many options—including Buy Here Pay Here—it can be difficult to decide which financing option is right for you. So let’s break one of the ways you can finance your vehicle through a Buy Here Pay Here dealership.
What Is a Buy Here Pay Here Dealership?
A Buy Here Pay Here dealership is just a dealership with in-house financing that allows customers to get a loan from the dealership instead of a bank or lending agency. Everything is done in one place.
These dealerships allow people with a low credit score or special circumstances to get financing for a vehicle when they wouldn’t normally be able to qualify for traditional loans. This comes with some benefits and drawbacks that are important to consider before settling on this choice of auto financing.
The Benefits of Paying for a Vehicle in the Same Place You Buy It
The main benefit of purchasing a car from a Buy Here Pay Here dealership is that the dealership doesn’t check your credit—all you have to do is prove you can make the required vehicle payments.
Another benefit of this method of financing is that it allows you can get a car much faster than at some traditional dealerships. No waits for credit checks, no days of processing paperwork—you can have your car at home the same day you first lay eyes on it for a test drive.
Lastly, you get more flexibility—some dealerships that provide buy here, pay here financing are more lenient about things like trade-ins and payment dates if you communicate with them ahead of time.
Potential Drawbacks of the Buy Here Pay Here Model for Customers
On the other hand, having your credit taken out of the car-buying equation means that the dealership likely won’t report your payments—meaning a car loan won’t improve your credit.
Your interest rates are also likely to be higher because of less regulation from banks, so you may pay more for a car that would be cheaper through different financing.
Lastly, Buy Here Pay Here dealerships usually have different requirements for payments or vehicle tracking—some dealerships require payments to be made in person weekly, while others may require a tracker to be placed in the vehicle in case it has to be repossessed.
Choosing the Best Financing Option for You
Now that you know what a Buy Here Pay Here dealership is, as well as some of the pros and cons of using their in-house financing options, it’s time to decide what kind of auto loan is the best for you and your next car!
Whether that car is being bought tomorrow or next year, it’s a good idea to stay informed about your options so you can make the best choice for your circumstances. Check out some traditional lenders and Buy Here Pay Here dealerships near you today.
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