Many people buy a car every day. While most people consider this a normal activity, there are some who can’t afford to go to a car dealer, select a car, get financing, and then drive the car home. They will need to find an alternative method of purchasing an automobile. Most often, this is through a buy here pay here car dealers. This type of dealership caters to people with bad credit. However, they are not a solution.
Buy Here Pay Here Car Lots was created out of the increasing demand for cars that could be bought and financed by those with poor credit. Credit ratings are very fragile and can be easily damaged or destroyed by everyday events. These events include a divorce, extended hospital stays, or loss of a job. Even the best of people can have bad luck. If a person’s financial situation is poor, these events can lead to a chain reaction that can cause their credit score and make it impossible to qualify for an auto loan.
It is difficult to bring your credit score back from the dumpster. This is a lengthy process that could take years. They will require an automobile during that time of rebuilding credit. Often, they have no choice but to buy from a car lot. Even though they may have bad credit, they can still buy and finance a car and can then start to work on their financial problems. This is how Buy Here Pay Here car dealers may be able to help, but there are downsides.
Buy here, Pay Here – Possible Problems
You will notice some differences between the traditional car buying and financing process when you finance and buy an automobile at a Buy Here Pay Here dealership. The first step in obtaining financing from a BHPH dealer is to qualify. This is determined by your income, work hours and other factors. After being qualified, you will be told what cars you can finance and which vehicles you can purchase. The terms of the transaction may include a high interest rates, limited vehicle choices, and weekly payments to the dealership. High interest rates and car prices are high. If you need to make costly repairs, a high payment can cause problems down the line. A warranty on your buy-here-pay-here car can help to avoid potential problems. It is also a smart choice if you have in house financing.