The standard way of buying a brand-new or a second-hand car is through paying cash on the spot, leasing or taking out a loan to finance all the vehicle’s purchase price.
However, having financial problems in the past like repossession, foreclosure, bankruptcy and high credit card balances simply hinder you from applying for a loan with banks and other financial institutions. You can take the alternative option like the buy here pay here car dealership, and this type of financing has less hassle than applying with traditional banks and lenders.
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This financing option provides a range of advantages to those who are in need of a vehicle but are in trouble with their credit score. So before deciding which of the car make and model to buy, check out a number of advantages of buy here pay here (BHPH) retailers.
Instead of processing your auto loan from a bank or other financial institution, you can have everything done from applying for the loan, to processing the loan, to making loan payments at the same place when you decide to go for buy here pay here dealership.
There’s little to no chance of returning the car when you are not satisfied with it when buying it from a private dealer. With buy here pay here car lots, many offer a return period so you can test drive what you purchased. Some provide forty-eight hours for their return policy, but go over this rule with the dealer to see what their return policy is.
There are buy here pay here car loans lots that accept trade-in deals. They take your old vehicle as part of down payment when you want a new model. So if you have a unit that doesn’t suit your needs or you need a bigger car, you can take it to buy here pay here dealers near you.
Some BHPH dealerships provide warranties that reach up to six months. It is best to inquire about warranties prior to acquiring a bad credit car.
Because everything is done in-house, dealers of buy here pay here financing, depending on the lender and location, are used to working with consumers with bad credit. They will be able to walk you through the entire process and usually, they will handle the paperwork so you will have a quick and hassle-free car buying experience.
The payment plan can be done once a week, once a month or twice a month, depending on your choice and when you get paid. Usually, the payment dates are scheduled on the day of your salary so you can keep up with the monthly payments on time. When it comes to the length of the loan, they will work with you to create a payment plan that is realistic to your budget.
Getting approved for a loan can be difficult but with buy here pay here car dealerships, no matter what your credit situation is like, bad credit or post-bankruptcy, you can still use this option. It’s a good way to rebuild your credit. Some car financing firms provide 15% to 20% interest rates to approved car buyers.
Some Buy Here Pay Here dealerships require no down payment or a low down payment. However, having a higher down payment will always be the better option even if it is not required. A larger down payment means you can have a lower monthly payment and less chances of going into default.
This also provides the lender with peace of mind knowing you are serious in paying your monthly dues. They may even offer a better interest rate if you put more money down. You can use this as a negotiating point.
In looking for a buy here pay here car dealerships, identify if the dealers offer a wide selection of auto makes and models you can choose from. Request for a pre-approval too so you can determine beforehand how much you can loan and check if the interest rates are lower than 20%. This is an indicator that you have acquired a loan with the best deal.
Having a poor credit rating shouldn’t prevent you from acquiring a good vehicle. As long as you passed the criteria required by dealerships, it’s affirmative that you can obtain a new vehicle.
So consider your employment and tenure, place of residence and how long you stayed in the place, and your proof of monthly income so you can set a realistic budget and avoid defaults. You can also apply online for a car loan from buy here pay here motorcycle dealerships you can trust.