A buy here pay here dealership is a car dealership that provides financing for the vehicles they are selling. They are providing loans directly to their customers instead of the customer going through a traditional bank or lending institution. The customer then makes their payments on the vehicle directly to the dealership instead of to a third-party lender. There are some benefits to using a buy here pay here dealership. However, there can also be some downsides to using this type of financing. Therefore, it is essential that you consider all of the pros and cons before you decide this is the type of financing you want to use.
What To Know About Buy Here Pay Here
Buy here pay here dealerships are geared more toward customers that tend to have no credit or bad credit. These dealerships can be helpful to individuals that may not be able to purchase a car through traditional methods. They don't often do a credit check. If they do, they have more relaxed requirements for credit scores. Because they provide financing in-house, they can relax their requirements.
A buy here pay here dealership typically requires a down payment. It could be a low amount of just a few hundred dollars, or it might be higher, like a few thousand. The vehicle you want to purchase and your credit score may be the deciding factor in your down payment amount. In addition, a dealership that offers buy here pay here dealership may require that you may make weekly or bi-weekly payments. While these payments may be small, when you make them each week, they can add up quickly.
Other Things to Know About Buy Here Pay Here
Dealerships that offer these types of loans are helping their customers, who typically aren't able to secure more traditional car loans. This does mean that you may pay a little higher interest rate due to the more lenient credit requirements. Buy here pay here dealerships typically have less inventory than other types of dealerships. AÂ buy here pay here dealership is focused on providing the best financing to customers with less than stellar credit and, as a result, may keep their inventory small.
A buy here pay here dealership may have limited warranties on the vehicles they sell. However, they may be able to offer you an extended warranty to provide additional coverage for your vehicle. This type of dealership may have additional products they can provide you with as part of their financing. You should expect to pay processing fees and documentation fees, which may be added to the cost of the vehicle.
It is much easier to obtain a car from a buy here pay here dealership. It is a much faster process and won't take you all day to sit around at the dealership. You will be able to fill out the application and walk away with your new car in a short amount of time. Many buy here pay here dealerships also accept trade-ins. As a result, they may offer you a better trade-in deal and process than other dealerships. In addition, they are more willing to take an older car that isn't in the best shape.Â
When you are deciding where to purchase your vehicle, you must have some understanding of your credit score and creditworthiness. For any contracts that you sign, you should read thoroughly to ensure you know the terms and conditions of the loan, the interest rate, and the total cost of the vehicle before you sign anything. When talking about the total cost of the vehicle, you should know the amount you are spending for each payment and how often they are. As you can see, there are many positives to buying a vehicle from a buy here pay here dealership.Â
When you are ready to make a vehicle purchase, visit the Glockner Family of Dealerships to find the right vehicle and deal for you. At Glockner Family of Dealerships, we are dedicated to helping our community. We offer buy here, pay here options at our dealerships as one of the many ways we help those in our community. Regardless of your credit, we aim for a 100% credit approval rate, even if it's bad or you have no credit. So visit us today to see how we can help you purchase your next vehicle.Â