It’s becoming harder and harder for good people out there to get financed. More and more people are going to buy here pay here dealerships for their used car needs. If your credit is less than stellar and you’re looking for a 2nd chance, buy here pay here is for you.
Here are a few questions to consider before you begin your search.
1. How does it work? It works a little backwards compared to a traditional car dealership. Instead of looking for a car first and then getting qualified, you get qualified first and then look for a car.
Why? Because it’s based around stability, not credit score. This allows the dealership more flexibility in who they can and cannot finance.
2. What do you mean by stability? Stability revolves around a job and place of residence. As long as you have those two things you’re in great shape. Sometimes to stabilize the loan a little more you’ll need a co-signer.
3. What do I need? You’ll need everything in question 2, a down payment, drivers license and insurance, which is usually provided by the dealership at the time of sale.
4. How long is the length of the loan? The loan is usually shorter term, under 3 years, which works in the customers benefit. You won’t get stuck with the same car, truck or SUV longer then you want.
5. How much are payments? Because it’s a shorter term car note you’ll usually end up paying between $200-$350 a month. Stay away from places that charge $400-$500 or more with low down payment requirements.
6. down payment: You’ll need at least $500 down at more places. The bigger your down payment the more of a selection you’ll have. You’ll also lower your monthly payment which in turn will save you more money over the long run against interest.
7. What kind of cars? You’ll see all sorts of cars and all your favorite models such as Ford, Chevy, BMW, Honda, Toyota, Nissan, Chrysler, Jeep, Dodge, Oldsmobile, Suzuki and more. You’ll know it’s a better one if they have a wide variety to choose from that range in make, model and year.
8. I heard some buy here pay here dealerships are shady? Yeah, just like any other car dealership, there are some bad apples out there. You’ll know it’s a good place if they take the time to check over their cars, offer service records, work with you on payments, are polite, and keep an open level of communication with you.
You’re now much better prepared to walk into a buy here pay here dealership. The next article will revolve around what kind of questions to ask before going to a buy here pay here dealership.