Buy here pay here car dealers are set up to give people with credit issues a way to achieve car ownership. Most people that decide to purchase a vehicle from a buy here pay here car lot do not qualify for traditional bank financing and have no other outlet.
What are the Advantages of getting a Buy Here Pay Here Car Loan?
- Credit Doesn’t Matter! Buy here pay here car loans are not credit driven. This means that most buy here pay here dealers are not concerned with your credit score or credit related issues.
- Increased Vehicle Reliability! Purchasing at a buy here pay here dealer will generally afford you the opportunity to get a more reliable car. By getting a loan from a BHPH car lot you are able to afford a more expensive car than f you bought a car outright, which generally results in the vehicle being less likely to breakdown. Lastly, if a buy here pay here dealer sells you an unreliable car you are less likely to pay the monthly payments. Therefore it is in the dealers best interest to make sure they sell you a car that is not prone to breakage.
What are the disadvantages to Buy Here Pay Here Car Financing?
- Interest Rates are Higher Because the dealer is acting as the bank and is responsible for defaults they will generally charge you a higher interest rate
- Increased Payment Frequency Buy here pay here car dealers usually require you to make weekly payments at the dealership
- Less Flexibility with Late Payments It is not uncommon for a buy here pay here dealer to set the process in motion to repossess your car immediately after a late payment. BHPH lots also affix GCP trackers to most cars in case of the need to repo the car at a later date.
If it’s buy here pay here car financing or a traditional auto loan we can help!
Although buy here pay here car dealers are not right for everyone they can surely be a huge help for a person that has no other viable option. When you apply with Freedom Auto Financing our processing software utilizes all the information provided to match you with a dealer or lender in your area. Apply now and get on the road.September 19, 2014