Understanding the Buy Here Pay Here Car Lot Policies

Page Blog 055 Understanding The Buy Here Pay Here Car Lot Policies Credit Auto City 300x225 (1)

For those people who have yet to establish a history of credit or have struggled with poor credit, finding a used car dealership that offers in house financing for car sales is essential to getting back on the road. With the U.S. experiencing some of the direst economic circumstances since the Great Depression, banks are avoiding anyone that they feel might pose even a little risk. As a result, buy here pay here auto dealers are often the only option for many people.

While car dealerships that offer in house financing might seem like a great idea in the moment, it is important to research each dealership to find the best one for you. Not all buy here pay here dealerships are created equal. There are sometimes hidden fees or catches that can end up costing you more than just money in the long run. What can a used car shopper look for from an in house financing car dealership to ensure that they not only get the car or truck they need, but a deal that will treat them right? Here are some questions you should ask before committing to a used car purchase from a buy here pay here location:
  • HOW DO YOU ACCEPT PAYMENT: Many dealerships that offer in house financing will require you to bring cash to them on a weekly or bi-weekly basis. While this may work just fine for you, it may mean a lengthy commute on a weekly or bi-weekly basis that can cost money or not fit one’s schedule. Does the used car dealership accept payments via a website or over the phone? What other payment options are available. Understanding the payment options prior to shopping with a car dealer can help you decide whether a particular dealership is right for you.
  • DO THEY REPORT TO THE CREDIT BUREAUS: Of course a dealership will report late payments or defaults to the major credit bureaus, but will they report prompt payments as well? That is an important question to ask for a person who is working hard to establish credit or repair damages done in the past. Choosing a buy here pay here dealership that can help your credit score should be one of your top priorities when making your choice.
  • WHAT IS THE LATE PAYMENT POLICY: While nobody goes into a car purchase with the intention of not making regular payments, things do happen. You’ll want to know if a single late payment can start the repossession process or create ridiculous fees that can lead to a mountain of debt you can’t possibly get out from under. Knowing these details up front can influence your choice of dealerships.
  • WHAT IS YOUR COMMITMENT TO QUALITY VEHICLES: Just because you cannot afford a brand new car, does not mean you shouldn’t have a quality vehicle. Ask about inspection standards and the warranties a used car dealership offers to get better insight on the quality of the vehicle you may be purchasing.

Asking these questions of a dealership that offers their own in house financing can ensure that you don’t get roped into a sub-par vehicle with a shady contract. There are many quality buy here pay here car dealerships out there, asking the right questions is the best way to find them.

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