The benefits of Buy Here Pay Here car dealerships

What Does Buy Here Pay Here Mean?

Not everyone has the option of walking into a traditional new car dealership and getting a loan for the vehicle of their dreams . Poor credit, credit issues, and bankruptcy can make it impossible to get a loan from either a car dealership or a bank. Traditional third-party lenders base their lending decisions on a buyer’s credit score and credit history and not on what they can afford to purchase.

However, there is hope. Buy Here Pay Here dealerships can and will finance vehicles in-house for purchase even for people regardless of credit history. As long as the buyer has an address and a provable, steady income, a Buy Here Pay Here dealership will offer them a loan.While the term Buy Here Pay Here is relatively new, the model of operation has been around for decades. Local dealerships that offer Buy Here Pay Here know that it is commonly difficult to purchase a vehicle through the traditional routes. They make things a lot easier for people looking for the first vehicle they need for work or school.

Some traditional dealerships have begun to see the opportunity open to them by offering Buy Here Pay Here services and in-house financing to their customers who don’t qualify for a typical loan or who do not have enough for a large down payment. However, some have caps on how many of these loans they can do in a certain time period, and many traditional dealerships still rely solely on third-party lenders so their hands are somewhat tied. Buy Here Pay Here dealerships want to sell their vehicles and specialize in getting customers into a vehicle regardless of their credit histories.

What Are the Differences?

A traditional car dealership and a Buy Here Pay Here car dealership have some other differences.
A Buy Here Pay Here dealership in Kansas City for example, will allow customers to pay in person and will partner with customers to choose a weekly or biweekly payment plan that works with their pay schedules. This is also good for your credit report and score.
Most Buy Here Pay Here dealerships report on-time payments to the three major credit bureaus, meaning every on-time payment helps to boost your credit score. Check with the Buy Here Pay Here dealership you plan to use as to whether they report your on-time payments to Experian, TransUnion, and Equifax.
Want to lower the down payment? These dealerships are also more likely to accept an old car as a trade-in, which will lower the down payment and possibly other payments. Traditional dealerships are much less likely to take old cars, and when they do take them, they may pay less for them.
Buy Here Pay Here dealerships also offer an easy buying experience. With traditional dealerships, buyers will test-drive several cars until they find one they like. The dealership will then work with a third party lender to determine how much credit, if any, the buyer qualifies for. A Buy Here Pay Here dealership will first determine the amount of credit available to the buyer, how much any trade-in vehicle is worth, and then show the buyer cars and trucks within their price point. This eliminates the stress of picking out a car or truck only to discover that it costs too much.
Most owners of Buy Here Pay Here dealerships understand that people are more than just a number associated with a credit report. They live and work in the same communities and neighborhoods as their customers, which gives them insight into what it’s like to need reliable transportation at an affordable price. They want to put people in cars and will do what is necessary to make that happen.
There are a few things to think about before going to the dealership:
Research local dealerships online and ask friends on social media for recommendations.
See how long the business has been in operation for.
Use an online calculator to figure out what is an affordable monthly payment and then make sure to stick to it.
Check the dealership website to get an idea of what vehicles are available and what they cost.
Check the Kelley Blue Book value of the vehicles to make sure you are getting a good deal.
Follow these simple steps and then contact a local Buy Here Pay Here dealership to find out how they can help finance your dream car today.