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Buy Here Pay Here Cars - Important Facts About Buy Here, Pay Here Car Lots - Buy here, pay here cars may not help repair your credit.

consumers usually payments financing

Many consumers with bad credit who need to purchase a car often turn to buy here, pay here cars. The buy here, pay here financing model basically just means that the consumer purchases the car from a local car lot and then secures in-house financing directly through the auto retailer. This all sounds very simple, but there are some important things about buy here, pay here cars that all consumers should consider before signing on the dotted line.

Buy here, pay here cars may not help repair your credit.

Consumers who are looking for a car loan to help repair their credit should ask a lot of questions about the buy here, pay here car lot they are considering. This is because some car lots that operate on a buy here, pay here financing model do not report the payment history on their loans to the credit reporting bureaus. Of course this may be a good thing if it turns out you can’t pay, but you will still have your car repossessed if that happens.

Buy here, pay here cars often require you to pay in-person.

Consumers should only purchase a car at a buy here, pay here lot if they can get back to that lot on a weekly or bi-weekly basis to make their payments. Usually they have to submit their payments at the car lot, and these payments are usually due several times per month, sometimes even as often as once a week.

Shopping for buy here, pay here cars is a completely different experience.

Experts on the buy here, pay here financing model say the car shopping process is usually the reverse of what consumers would normally expect. A salesman at a traditional car lot often shows the consumer several different models, allowing him to choose one he likes. The salesman and the consumer then begin to talk about prices and payments on the vehicle. However, buy here, pay here car lots usually start with the amount of money consumers can afford and then show them vehicles that are within their budget means.

Purchasing from a buy here, pay here lot should be a last resort.

The overall payment structure involved in purchasing from a buy here, pay here lot does usually mean that consumers end up paying much more for a car than what it is actually worth. That fact, paired with the fact that some dealers do not report good payment habits means that purchasing from this type of dealer should be a last resort. Consumers should try to secure a loan through a traditional third party lender first. If they can’t get a car loan through these traditional methods, then a buy here, pay here lot is a viable option to purchase a car. After all, bad credit doesn’t mean you shouldn’t have a car. It just means you may have to pay a little bit more for that car.

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