The world of car financing is a big one, and many prospective buyers feel lost in the sea. Fortunately, this guide will show you the basics of buy here pay here financing and explain how the experience is different from a traditional dealership.
At a car dealership, you do not necessarily need to have the best credit scores to get approved for a car. However, you generally need decent credit. Buy here, pay here lots are usually more flexible with this type of requirement. At some buy here pay here car lots, a credit check might not even be ran at all. Of course, this means your payments will not be reported to the credit bureaus either.
Traditionally, you would make payments right to the car dealership. Some people choose to mail these payments in, and others will submit them electronically. This might be an option with your buy here pay here lot as each one can have its own stipulations. However, as the name implies, it is more likely that you will take the payment right to the auto dealerships. These payments are usually made on a more frequent basis than ones to a dealership.
At a brand-name dealership, you will find plenty of vehicles that are both old and new. Buy here pay here used car lots do tend to have older vehicles, but this tendency is not necessarily a bad thing. Foremost, these cars are more affordable to their target audiences. Second, you have a better chance of the lot taking your older car as a trade-in than you would at a new car dealership.
If you have ever been to a dealership, you know that the financial negotiations usually come after you have looked at cars in your price range. At buy here pay here car lots, the salesperson will look into your financial affairs first. Whether this involves running a credit report, finding out how much of a down payment you are going to make or some other sort of combination, your financial situation plays a major role in the cars that the sales representative is going to show you.
Buy here pay here financing is different in some ways from an experience at a traditional car dealership. However, as you can see, the two types of processes do share some similarities as well.