If you have credit problems, you are probably familiar with the finance on the lot car dealerships; in the past if a consumer had credit problems the choices were limited. As far as auto financing goes, most dealerships would shy away from lending to people who have bad credit, therefore Buy Here Pay Here lots, have in the past, been the only option for consumers with bad credit, but today, in an economy where many more consumers have credit problems, there are more options. Many bad credit lending and finance companies are popping up everywhere including the internet.
Here are some of the advantages and disadvantages of Buy Here Pay Here (BHPH) car lots;
Advantages are that you can get approved for a loan, you usually set up bi-weekly payments that may work well with your budget, you can often times get approved the same day, BHPH dealerships tend to be flexible regarding trade-ins.
Disadvantages that many consumers have voiced in regard to purchasing a car at a BHPH car lot include; very high interest rates, (some as high as 26% as BHPH dealerships are not mandated to follow rate restrictions imposed by law on other finance companies), interest rates may be the number one negotiating factor, even more so than the actual asking price of the vehicle, limited choices in the specific make and model of vehicles available.
Be sure to consider all of your options and be aware that there are many other options now days for consumers with less than perfect credit. If you decide to seek auto financing from a loan company that specializes in approving car loans for consumers with lower credit ratings, visit your local Cross Keys Auto Sales dealership in St. Louis and check out our wide selection of used and certified pre-owned vehicles available.
Pros and Cons of Buy Here Pay Here Auto Dealerships
Here are some of the advantages and disadvantages of Buy Here Pay Here (BHPH) car lots;
Advantages are that you can get approved for a loan, you usually set up bi-weekly payments that may work well with your budget, you can often times get approved the same day, BHPH dealerships tend to be flexible regarding trade-ins.
Disadvantages that many consumers have voiced in regard to purchasing a car at a BHPH car lot include; very high interest rates, (some as high as 26% as BHPH dealerships are not mandated to follow rate restrictions imposed by law on other finance companies), interest rates may be the number one negotiating factor, even more so than the actual asking price of the vehicle, limited choices in the specific make and model of vehicles available.
Be sure to consider all of your options and be aware that there are many other options now days for consumers with less than perfect credit. If you decide to seek auto financing from a loan company that specializes in approving car loans for consumers with lower credit ratings, visit your local Cross Keys Auto Sales dealership in St. Louis and check out our wide selection of used and certified pre-owned vehicles available.