Despite an economy which continues to make slow improvements, many are still out of work simply because they lack sufficient transportation to reach the job site reliably. In addition, of those who manage to leverage public transportation system or ride sharing to keep a steady job, many are settling for a much lower paycheck than they could obtain if they had the full transportation independence. Often, in these cases, their credit score slips, raising the down payment a regular dealership would ask on a car or truck. Without a way to afford this down payment, the vicious cycle continues, with unpaid bills and the credit score dropping even lower.
Buy here pay here (bhph) dealerships offer you some significant advantages when trying to get behind the wheel quickly.
- First, contrary to their reputation, many bad credit car dealers and buy here pay here car lots will offer very low down payments to get you driving. In fact many of the AnyCreditCarConnection affiliated dealerships offer a large selection of vehicles for just $500 down
- Also, it is often thought that bhph dealers are more complicated to purchase a vehicle, but they are actually easier. Because of the nature the dealership owns the financial institution, you don’t have to go offsite to configure loan payments. When you purchase the vehicle you can get everything set up at the same time.
- Furthermore, unlike many banks, your payment plan (weekly, semi monthly or monthly) will be so flexible that you can often align it to the days when you receive your job paycheck. This really works to your advantage-with your paychecks and payment dates synchronized, its more likely that you will make the payments on time.
- Another buy here pay here adventage is that many conventional dealerships will not accept past repossessions or bankruptcies. However, most buy here pay here dealerships will ignore them, as long as you they aren’t ongoing. In other words, if you are not in an open bankruptcy, and if you have not had a repossession in the last 10 months, these factors are unlikely to hamper your chances of approval.
- With each bad credit client, buy here pay here dealerships are taking a risk. To offset that risk, buy here pay here dealers have a reputation of charging very high interest rates (30% and higher). While this has been true sometimes in the past, most buy here pay here dealerships today fall into an interest rate window of 14-20%, which is manageable. The idea is to get on your feet and improve your credit score, and buy here pay here dealerships give you that opportunity.
- Many offer great warranties and return policies. If you’re not satisfied with the car, or feel that something isn’t running properly, you’re taken care of.
- Finally, many buy here pay here dealerships work to improve your credit score by actively reporting your on time payments to the major credit agencies. This means as you are making payments on time, you are also improving your credit.
As you can see, the advantages of buy here pay here are numerous. Oversight of their own financing allows buy here pay here dealerships a great deal of flexibility in approving auto loans, and allows them to look at other factors besides bad credit. Instead, many of them look at time on the job, proof of steady income, residence and other factors. By catering to the bad credit sector, bhph dealers can offer them advantages and incentives that will actually help them to raise themselves out of their situation.