Do you need a car but confused of the many ways that dealers offer financing? You might have noticed how with the slow economy, the Here Pay Here Car Dealerships signs in the streets have multiplied! This is no surprise as these dealers usually offer financing options that do not necessarily use conventional criteria.
Defining Buy Here, Pay Here Car Dealerships
Although these dealerships might vary in their requirements, with most customers buy here pay here car dealers will not check the credit report. Hence, having problems in the credit history is usually not a problem with these dealers. In addition, it is the dealership itself that is almost always loaning the customer, not a third party bank.
Who would benefit from Buy Here, Pay Here Car Dealerships?
The buy here pay here lots are popular for all those customers with less than perfect credit or no credit history at all. In addition, since there is no third party bank involved, the prices tend to be low for everyone. So you might be interested in a buy here pay here loans even if your credit is good but you don’t have enough down payment, can’t pay high monthly payments, or have no money at the moment.
Do not put your hopes too high, these dealerships often do not carry the newest cars around. It is often wise to bring your own mechanic for inspection if they allow you. Also test driving the vehicle is essential. This does not mean that the vehicles are in poor condition; simply pay more attention to the details of each vehicle you are buying. Be a smart shopper and check the driving ability of the vehicle and not just the paint and seats.
Online Auto Loan Advantage
You often do not need to step in buy here pay here lots to apply. Dealerships are moving toward online pre-approvals to speed up the process. This way the customer knows ahead of time of their guaranteed approval and only has to choose and test the desired cars. Also, with the online pre-approved application, the dealership gets the sale done faster.
Basic common requirements
Buy here pay here dealers requirements vary from vehicle to vehicle not just from dealer to dealer. These deals might require a bank statement, pay stubs, adequate income, good time on the job, proof of insurance, and/or variable cash down payments.
What if the customer is missing some requirements?
When a customer is missing some of the basic requirements to make the sale, the buy here pay here dealership often asks for the other requirements to be at a higher level. So for example, if the customer just got a new job and does not have adequate income from his old job, his old pay stubs would be too low for an approval, so the dealership might ask for a higher down payment to be on the safe side.
I hope to have clarified Buy Here Pay Here Car Dealerships for everyone.