09th Jul 2010
Why you’d want to buy from a buy here pay here car lot
People who have experienced significant financial bumps and bruises will on many occasions find it hard to get an auto loan. Actually, most will find it hard to get a loan on anything. If ever you’re having this experience right now, you most probably have already been turned down a number of times. So, if you really need to get a car right now, but you are having a hard time getting a loan due to your bad credit history, then your best bet is to go to a Buy Here Pay Here (BHPH) car lot.
A Buy Here Pay Here dealer allow you to get an installment loan and make payments on it at the same dealership. You’re basically buying a car through in-house financing rather than through a third party, like a bank. But, unlike traditional lenders where you make a monthly payment, BHPH dealers usually require you to make weekly or bi-weekly payments at the same dealership where you bought the car. Therefore, you buy the car at the dealership and you pay for the car at the dealership.
So, how is a BHPH car lot different from a traditional car lot? Well, actually, very little. The most significant difference between a traditional dealership and a BHPH financing is in the shopping experience. Traditional dealers usually save payment options for last. They usually show you a few models, ask you what your preferences are, and sometimes when you see a car that you might like, you get to test drive it. BHPH dealers on the other hand usually do the buying process in reverse. The dealer asks you a series of questions, sometimes run a credit report, and basically try to understand your credit situation before showing you available cars. They will usually show you just the cars that you can afford to pay.
So, what are the benefits of going to a BHPH car lot? For one, it gives people who have trouble getting an auto loan the opportunity to get a needed car. Sometimes, BHPH financing is the only option for people who have been turned down by traditional loan institutions.
Two, it helps rebuild a bad credit history when you make your payments on your installment loan on time. If you are a good payer, many BHPH car logs will report that positive behavior to the credit reporting agencies. Therefore, your credit score should improve with time.
So, if you’re someone who really needs a car loan but you keep being turned down by banks because of your low credit score, why not try one of the buy here pay here dealerships near you like a Citizens auto finance dealer. Who knows, this just might be the option for you.
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