There are many used cars buy here pay here car lots, and for the most part, it can be a strenuous situation getting approved unless you take some precautions. Generally, you will purchase your car from this type of dealer, and make payments directly to that facility, rather than getting a separate loan.
The reputation of such dealerships is that they can finance people with terrible credit, whereas the buyer would be unable to get any credit elsewhere, and in most cases that is true. The interest rate could possibly be higher than average, but to a person who needs a car, that is not the biggest problem in the world.
Most people know how much they can spend a month, or a week for a car payment, and so they judge their ability to pay on that basis. It is always a good idea to have any car that you are thinking of buying inspected by a friend who is knowledgeable, or by a mechanic, who you might want to pay to give your prospective vehicle the once over just to see if anything is in need of repair before you purchase it.
The used cars buy here pay here dealerships are primarily in existence to service the people that have poor credit. This is simply a fact of life, since the agencies that deal this way make as much of off the financing of the cars, as they do selling the cars.
Usually the credit rate that the customer will pay is a very high rate, which is commensurate with the risk of transaction, and the borrower will pay more than it would cost at a regular bank, but chances are extremely high the bank would not loan the money in the first place. So it’s better to get the car if you can especially when you need it for life and work. You could always refinance to a lower rate in 6 months after making your payments on time.
Many of the used cars buy here pay here facilities will allow a borrower to make payments on a weekly basis. This suits many blue collar workers who simply need transportation, and they get paid on a weekly basis, so they just bring in their payments to the facility on a weekly basis.
If a borrower misses a couple of payments, the car can be repossessed, and the dealer is not out anything, since he has the car back, and he can start all over with another customer. If a customer pays off a car and gets to keep it, all the better.
If this is the only way an individual can get a car, and they buy one that is within their means to pay for it, then that’s great and a fresh new start. After all, transportation is important, and as long as a person has the cash flow to make the payments, it will work out.
Not all facilities that provide this service report the borrower’s payments to the credit agencies, so it’s a nice idea for the borrow to ask them to do so.
Our process provides a service for those who don’t qualify for regular credit the traditional way, and yet can qualify this way for a car today. It certainly beats walking.