If you’re looking to purchase a used car but don’t have the cash to pay the full price, a buy here pay here dealership is an excellent choice. These companies offer financing for customers with low credit scores and bad work history.
Instead of a traditional bank or financing company, a Louisville buy here pay here Dealer assumes the risk and responsibility of making the loan payments. Because the dealers take on the risk of customer default, their business grows by word of mouth.
Applying for a buy here pay here loan is easy and hassle-free. Unlike a traditional bank or credit union, the buy here pay here dealer will handle all future payments, and the financing process is simple.
However, you should be aware that you may not receive an immediate decision on auto financing, especially if you have a bad credit score or do not have a credit history.
Depending on the specifics of your situation, the buy here pay here dealership may restrict the types of vehicles it can finance. Those with bad credit may also struggle to qualify for financing, and higher payments can be hard to afford.
Make sure you can afford the monthly payments. While some buy here pay here dealerships offer financing for people with bad credit, if your credit rating is lower than this, you may not be able to qualify for a decent interest rate. If you have poor credit, you may be left with no choice but to go to a buy here pay here dealership, where you’ll pay double for the same car. And don’t let the low price convince you.
When purchasing a new car through a BHPH dealership, you need to be prepared to put a large down payment. Having low cash on hand may limit your selection of cars.
Moreover, if you’re not able to pay the car off, the buy here pay here dealership can repossess the vehicle. BHPH dealerships can also be less lenient when you’re struggling to make payments.
Buying a car from a buy here pay here dealership may be an excellent option if you don’t have the money to get the loan on your own. The financing process at a buy here pay here car lot is seamless. You don’t need to visit several banks to secure the best rate. Unlike traditional banks, auto lots that offer buy here pay here financing are more flexible and willing to work with customers of all credit histories.
Another disadvantage to a buy here pay here dealership is the need to obtain a gap insurance policy. Negative equity can make it very difficult to trade-in or sell your car in the future.
Most buy here pay here dealerships also install GPS tracking devices and other controls that prevent you from starting the vehicle. This can be a problem, but you can avoid such risks by doing a little homework and planning ahead. Further, you can use a vehicle identification number (VIN) to look up a car’s history before you buy it.