Going to a Buy Here Pay Here, or BHPH, a dealership may scare you a little bit. There are so many rumors and whatnots going around that they only offer high-interest rates together with hidden fees. Plus, some say that they require a larger down payment. However, you’ve got to be given real information.
Buy Here Pay Here dealers, unlike before, don’t work like savages that just sell you a car even if they know it’s a lemon. There are now very strict laws, both state and federal, to keep dealerships in tow for selling lemons. Plus, these same laws also make sure that the interest rates aren’t substantially higher than what you’d pay at the bank. Some people have also said they’ve had a run-in with hidden fees like administration fees, auto inspector fees, delivery fees. However, these are the people who didn’t think twice about what they’re getting into. These are all very important questions to ask is whether or not you have other fees to pay. There is no such thing as a hidden fee unless you don’t ask. With the auto inspector fee, this is a sure fire way to know that your car is in mint condition. Furthermore, there are also some people saying that Buy Here Pay Here dealerships require you to make large down payments. But, I’m sure they don’t tell you the other side of the story. The main reason why a Buy Here Pay Here would require a large down payment is so that your monthly payments will be lower. Some writers put it into perspective that Buy Here Pay Here dealers are money-hungry and that they need to make enough cash or commission on their sale. If Buy Here Pay Here dealers know that you don’t have a large sum for paying the down, they would give you other possible options. Even a vehicle trade-in will work on both your ends.
Why Buy Here Pay Here dealers are the best option?
A lot of people think that the best option for car or auto loans are in banks or private/personal loans. However, Buy Here Pay Here dealers may be the best option for you. Actually, a lot of people won’t recommend this route especially when it comes to owning a car for your needs. However, this, again, could be the best route to take as Buy Here Pay Here finances you by themselves. There isn’t any third party or bank involved, so it’s much easier to communicate.
So, without banks or accredited lenders financing your auto loan, this means that you pay directly to the Buy Here Pay Here dealers. This is a great option as Buy Here Pay Here dealers usually have varied terms in comparison to banks or lenders. Plus, you have options of paying weekly or even bi-weekly, but it’s all dependent on the agreed terms. Unlike traditional car loan lenders, you’ll have monthly required payments that’ll be made at the bank. Buy Here Pay Here programs actually advertise their payments differently. So, in this case, you’ll get to test drive the cars that’ll fit your needs. Afterward, you can ask about the different terms that you could afford. This is very different from traditional car loans as you’d discuss the financial situation first. Buy Here Pay Here dealerships are actually the perfect route for those with bad or no credit history.
Better for your credit
Since Buy Here Pay Here dealers also assess your ability to make payments, they show you the necessary terms as well as the selection of cars that’ll fit within your budget. This is usually done with what fits in your current financial situation. Why do they do this? To lessen the possibility of your car being repossessed. Unlike bank loans or accredited lenders, all they care about is the money. So, if your car gets repossessed, it’s more on your end. Plus, traditional lenders don’t care as much as Buy Here Pay Here dealers.
Banks or those that offer traditional financing schemes also may not approve your application if your credit history doesn’t meet their requirements. So, you might even just end up with the Buy Here Pay Here in-house financing option. By doing so, you can actually improve your credit rating especially if you take the weekly or bi-weekly route. However, you’ll also need to ask Buy Here Pay Here dealers report your payments, so that your credit history will improve. So, make sure that you apple from dealerships that’ll submit their reports to credit reporting agencies.
Trade-ins are available
If you have a used car, you may also ask if the Buy Here Pay Here dealership will accept trade-ins. In essence, most Buy Here Pay Here dealerships accept trade-ins just as long as the car can still be used in the long-run. Sometimes, when your trade in your car, you can use this as the down payment. If your car is still of value, it’ll help you pay less every time you make a payment. This is a great option as other new car lots don’t offer the same trade. Plus, new car lots follow the traditional financing options, which leaves most people with bad or no credit history empty-handed.
Hopefully, the information in this post will change bad notions about Buy Here Pay Here dealers. There are many things that can benefit you when you deal with Buy Here Pay Here lots. Besides possibly increasing your credit history, you’ll also be able to drive out with your car in the day that you’re done with the deal. So, don’t hesitate to go to The Auto Warehouse and see what car is in store just for you!