Buy Here Pay Here Car Lots

What are Buy Here Pay Here Car Lots?

The buy here pay here option can be a little frightening to hear because of the interest rates, limited warranty, and other issues that you hear from people who have experienced it first-hand.

However, this shouldn’t be the case because there are dealerships that accommodate people with bad credit history without compromising the quality of service. So if you are in an urgent need of a vehicle but declined by most banks and credit unions in your area, your last resort is the buy here pay here lots. There are tips to follow that could make your car buying experience easier and less stressful.

Buy Here Pay Here Car Lots

Should I check the origin of the vehicle?

It is important to know where the car came from prior to buying it. This is different from buying something brand-new, because in buy here pay here, you are mostly dealing with a used vehicle and car buyers with bad credit history are the ones paying it.

So to get your money’s worth and avoid wasting time in processing an car loan, it is important to know if the car you need to have has encountered some mechanical troubles or encountered some accidents. If the car dealership won’t let you see a report of the car’s history, then look for another company that will allow you to know about its mechanical side.

Should I get the car lot checked out?

There are buy here pay here dealerships that won’t let you test drive your chosen car so you could assess if it is in good condition. If this is the case, don’t buy the unit because they might be hiding something. Just go to other used car to find what you are looking for. When you are allowed to see the car’s engine and performance, if possible, bring a mechanic to assess it if the vehicle is in good shape.

Are Buy Here Pay Here Car Lots better for short term financing?

Having a poor credit rating because of your unpaid credit card balances could greatly affect your auto loan application. But in BHPH this dealership is best when you opt for short-term auto financing. This is different from paying a smaller amount with higher payment frequency but this is choosing the twice-a-week payment for the entire thirty-two months than the sixty-four months. This allows you to pay lower interest rates, and you could save some money in the long run.

How much down payment should I use?

If you don’t want to pay big amount of monthly fees, reduce your payments by putting up a bigger cash down payment. For car financing, the more you pay upfront, the more you lessen the loan term. Usually for buy here pay here dealers, they ask for twenty percent down payment.

Being asked for more down payment is a good thing but ensure to negotiate for short-term financing.

Down payment

Buy Your Need, Not Your Wants

It is always advisable to buy what you need and not something that you just want from a buy here pay here car dealer. So if you can find a deal that is lower than the budget you set, then purchase that one. Don’t buy something just because of its add-ons. So when it is something that you need, take a small amount of savings to pay for the down payment on a less expensive or cheaper vehicle.

Get a Co-Signer

In every loan that involves a big amount of money, there’s always a co-signer needed for you to be approved of a bad credit car loan. Every credit organization needs a co-signer for auto loans so they will know who to contact and will be responsible to pay once you default from your existing loan.

Talk to a Finance Expert

If you have a credit report with you, consult with a finance expert so you will be guided in your application of buy here pay here car dealership and what car make and model that suits your budget.

Qualifying for a buy here pay here Auto Loan

Anyone has a unique financial situation, so there are general requirements that could at least help people with low credit scores secure an auto loan, and these basic qualifications might give you a chance to be approved of financing.

  • Specific monthly income – Inquire from your chosen dealership how much monthly income they require you to have to qualify for a car loan.
  • Full-time job – Having a permanent, full-time job and not the seasonal, freelance, project-only basis one could give you a chance to be approved.
  • Legal residency – You need to be a legal resident for a specific number of months or years in your area so you can qualify for a loan. A proof of residency and working phone number are needed too.

Do buy here pay here Car Lots have in-house financing?

The dealership known as buy here pay here doesn’t only sell vehicles of your choice but they act as the bank too. If you aren’t familiar why, they provide in-house financing to people who have no other choice but to turn to buy here pay here because usually, they are most likely declined by banks and car loan companies because of their pending credit card balances, missed payments of mortgages, repossession and the like.

In short, the buy here pay here car dealers accommodate people with bad credit history and offer them bad credit car loans options which you can directly pay to them.

If you aren’t qualified for traditional car lots because you have experienced bankruptcy or other serious financial issues before, then turn to car lots offering in-house financing and a chance to qualify for a pre-owned car.

How quickly can I get approval from the car lot?

When you turn to buy here pay here car lots experts, they offer fast approval process, which lets you save much of your time. Some even provide low to no down payment option, and the payment terms are even flexible. So if you want to know how to qualify for this auto financing plan, refer to these tips that are surely helpful for you.

Here are 7 more points to help you getting your car loan:

1. When looking for a car, ask the dealers where it came from

You can request for a Carfax report so you can go over the history report of the vehicle. If your dealer would deny this to you, it’s better to look for another unit or shop for a car elsewhere.

2. Bring a car mechanic with you on the car lot

If you have chosen a car you’re much interested in, come back and take a mechanic with you to a buy here pay here car lot to check the car’s engine, performance, specifications and other issues before negotiating with payments. Choose a mechanic who’s honest and not biased.

3. Apply for short-term car financing

It cannot be avoided to have a negative equity in the buy car dealership that you want to purchase in buy here pay here dealership. But to avoid higher amount of total payments, opt for higher down payment at a shorter term. This kind of deal will help you finish off your loans in a short period of time.

4. Inquire about the interest rate

interest rateSome car lots Orlando fl dealership provide tactics that pressure potential car buyers to acquire the deal they are offering without knowing what the interest rates. Ask about the total cost of the car, the interest you have to pay and other charges so you can compare it to other BHPH dealerships.

5. Ask for a list of customer references

Dealerships should have no problem in providing you with at least five references. These references shouldn’t be connected in any way to the dealer, like their kids, relatives, partners or close friends. It should be past customers who have experienced their service firsthand. If possible, ask your friends if they know someone else who has been buying a used car from buy here pay here lots.

6. Use cash to pay off your down payment

A down payment is your initial payment, and most dealerships ask for down payment. Putting some money down in cash is beneficial so you wouldn’t suffer from higher interest rate and huge monthly payments. Instead, you can focus on saving and rebuilding your credit score.

7. Prepare your requirements for faster and smoother transaction

If you are qualified for the buy here pay here financing, prepare the requirements to be submitted so you won’t keep on coming back to the car lots to comply all the paperwork. The requirements include:

  • Proof of income – Submit your pay stubs so the dealership will know you have the capacity to pay your monthly obligations.
  • Proof of residence – Secure a copy of at least two utility bills with your name on it and home address. If you have been renting, show a rental agreement or mortgage contract to them.
  • Proof of citizenship – Have your social security card ready or a certified copy of your birth certificate so it would be easier for buy here pay here car dealers to approve your auto loan.
  • Valid ID or driver’s license – To drive legally the vehicle you will be buying, have your license ready. The Tampa dealership will check if the name and address you presented match your identification.
  • Auto insurance copy – If you don’t have a car insurance, you can obtain it after signing a contract to the dealer. They will help you find an insurance company where you can apply online.
  • Trade-In title – In case you are trading your old motorcycle, take the title with you and show it to the lending company. The title can help determine how much can be verified.
  • Down payment – Instead of credit check, buy here pay here motorcycle dealerships require a down payment, depending on the vehicle’s sale price.