Have you ever tried applying for a loan on a car when you have a low credit score? If you have, then you must already know that getting approval is close to impossible. But, lucky for you, there are other options available aside from credit unions, banks, and third-party lenders.
Ever heard of buy here pay here dealerships? If you haven’t, then this article will tell you what you need to know.
How does buy here pay here financing work?
People looking into buying a car but who do not have any money at hand and have a less-than-impressive credit score should consider getting a used car at a buy here pay here near them. Unlike traditional car dealerships, loans applied in buy here pay here dealerships are often approved regardless of a person’s credit history.
Offering in-house financing services, these car dealerships allow customers to buy luxury pre-owned vehicles by lending them money. All a customer has to do is submit the requirements and wait for the car dealership to determine which loan amount they qualify for. Then, after choosing from a list of vehicles within that specific price range, the customer can drive his chosen vehicle off the lot and make regular payments at the same car dealership.
People who are burdened by their poor credit history and records of bankruptcy or repossession now have nothing to fear. With buy here pay here car dealerships, they can now apply for loans on a used car without worrying about how the credit checks would affect their application.
Since the car dealership acts as both the seller and the finance provider, customers would not have to go through the trouble of talking to various agencies. So, in a way, a buy here pay here is like a one-stop-shop for those looking to purchase a vehicle with limited resources.
With buy-here-pay-here car dealerships’ in-house financing service, customers will be able to save a lot of time waiting for loan approval. Some customers even find out which loan amount they qualify for on the same day they filed their loan application. And, more often than not, these customers end up driving their chosen vehicles out the car dealership’s lot on the same day too!
Making monthly, weekly, or even bi-weekly payments that the lender established can prove to be a daunting task. Customers who get their vehicles at buy here pay here car dealerships; however, they usually don’t have to worry about that. Because the car seller is also the one lending the car buyer money, these car sellers usually give their customers the luxury of choosing to make payments at specific times of months.
While some people are reluctant to purchase vehicles at a buy-here-pay-here car dealership, there are plenty of advantages to doing so. Granted, there are also some disadvantages. But aren’t there disadvantages to other options too?