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How Do Buy Here Pay Here Dealerships Work?

How Do Buy Here Pay Here Dealerships Work?

You need a car, but what if your finances are not good enough for a traditional auto loan?

There is an option called “buy here-pay here” financing. It is a legitimate loan offered through auto dealers rather than through a bank or financial institution. As such, there are some differences in how this type of financing works. If you are considering purchasing a vehicle, “buy here-pay here” dealerships offer the following advantages:

Credit is not a limitCredit is not a limit

For people with poor credit, “buy here-pay here” financing might be their best option. Often, there’s no credit check, as a dealer may instead seek proof of residency and employment. (However, it’s always a good idea to know your credit score in Once they have the right information, the dealer works with you to determine what type of payment you can handle. At many dealerships, a down payment is not even necessary. Theoretically, you can walk into a dealership and drive out in a car without even opening your wallet.

Flexible payments

Flexible paymentsPayments can be monthly, but usually are made weekly, and in some cases, biweekly. Some dealers will want a bank account so that they can automatically deduct their payment, while others are fine with an in-person payment. We will help you create a payment structure that works with your schedule. Additionally, on-time payments can go towards helping to boost your credit score since we will report these to the credit bureau.

Better than private sales

Compared to private sales, “buy here-pay here” dealerships offer a better deal. After all, how many private sellers offer their own financing? Buying from this type of dealership also affords you more protections and guarantees than buying from a classified ad or an internet post. Dealers want to ensure their customers are happy or else they risk gaining a negative reputation – something private sellers don’t have to worry about.

Built-in warrantyBuilt-in warranty

It is important to consider maintenance expenses when buying a vehicle. Some dealers will offer an extended warranty or service plan as part of the vehicle purchase. In the event of a mechanical problem, this limits your exposure to just the cost of a repair deductible. You’ll also have peace of mind for the entire term of the loan, if not longer.

Tips to remember

“Buy here-pay here” is a good option for someone who wants a car but does not have a stellar credit rating. When going the “buy here-pay here” route, remember to:

  • Make a down payment to reduce the interest you’ll pay.
  • Check your credit history, and if possible, negotiate for a lower interest rate.
  • Pay on time to help rebuild your credit score.

“Buy here-pay here” dealerships offer many advantages compared to the traditional bank loan. At Advantage Car & Credit, we know that buying a vehicle is a major investment. That’s why we offer various financing options to help you get the car you want at a price you can afford. To learn more, contact us today.

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