Bad credit? Don’t worry, you’re not the only one struggling. But you do have to decide between either pursuing a car loan or simply going to a buy here pay here dealer for in-house financing. Both sides have their ups and downs, but if your credit is bad, chances are you’ll have a hard time getting a loan. If you end up getting a car loan from a dealership, you likely won’t get approved for a loan that has your idea of a standard interest rate. It will be much higher than average, and you could end up roped into a deal that you can’t properly afford.
Because of this, buy here pay here dealerships are the way to go. They make things much easier and the entire process is done in-house.
In-House Financing
Everything at a buy here pay here dealership is done in-house, including the financing. It’s a one-stop shopping experience. You get the car, get the loan, and pay back the loan all at the dealership. Typically, buy here pay here dealerships don’t accept checks or money orders. Since they are dealing with bad credit consumers, some of whom might have bad credit because they have a history of missing payments, the BHPH dealer will ask for a loan payment bi-weekly, delivered in person, and in cash.
While this might seem like a pain at first, it can actually help those who need rigidity when it comes to big financial decisions. Therefore, it could potentially promote a better understanding of financial responsibility. Helping to build good habits along the way, which can later be applied to paying other bills on time.
BHPH Dealers Pick a Car For You – Based On What You Can Afford
Along with providing you with a loan in-house, buy here pay here dealerships also pick the car for you based on your credit score. Why your credit score? Because that number, combined with your income, will determine what you can afford for a car loan. The interest rate might be higher than average, but at least you know you’ll end up in something that you can afford. Don’t believe the rumors about buy here pay here scams, that was when they first opened. Now, there are more buy here pay here dealerships looking to help consumers, rather than hurt them.
Of course, that doesn’t mean you should just buy the first car presented to you. Make sure to do your due diligence like any good used car buyer: check it out on a bright and dry day, crawl under the car and look for leaks or rust, ask for a history report, etc. Just because you have bad credit and are shopping at a BHPH dealership doesn’t mean you need to buy a terrible car. If that car doesn’t work out, request another one in that price range, or go to another BHPH dealership and try again. Remember: you are the consumer, which means you have the power to walk away. Walking away is your most powerful tool in the car buying world, so don’t be afraid to use it.
Overall, the BHPH process is just easier. Why deal with going through the trouble of finding a car loan when you can simply let a BHPH dealership take care of everything for you?
