People do it every day. Although most people assume this is an easy task, there is a significant portion of the population who are unable to visit a typical car dealer to select a vehicle, apply for financing, and drive it home. They need an alternative route to buying an automobile, and most often this is via a buy here-pay here lot. They are an auto dealership that caters specifically to those with bad credit. But, is this a solution or a problem?
Buy Here Pay Here Car Lots was founded out of the demand for automobiles that could easily be bought and financed even by people with poor credit. Common events can cause credit ratings to be damaged or destroyed. Credit is very fragile. These can include a divorce or prolonged hospitalization, as well as the loss of a career. Good things can happen to people who aren't in good financial standing. This can cause credit scores to plummet to the point that they cannot qualify for an automobile loan.
Pay Here, Buy Here - The Solution
Rebuilding credit after it has been lost is not something you can do in a matter of hours. It takes a long time and could take several years. In order to rebuild their credit, they will need an auto. Sometimes their only option is to go with a buy-here-pay-here car lot. Although they might not be able to finance a car, even if they have poor credit, it will help them get their lives in order. The upside to buying a car from a dealer who is willing to buy here and pay here is that it can provide a solution.
Pay Here, Buy Here - Potential Problems
There are many differences in the Buy Here Pay Here process for buying and financing an automobile. First, you will need to be qualified by the dealer for financing. This is determined based on your income and work hours. Once you have been qualified, you will be informed which cars you can purchase and finance. You may be subject to a high rate of interest, limited vehicle options and regular payments at the dealership. It is expensive to buy a car, and paying high payments could lead to costly car repairs. If you buy a car with in-house financing, a warranty can help you avoid any potential problems.