Pros and Cons of Buy Here Pay Here Dealerships
Buy here pay here dealerships are a car-buying alternative for people who have bad credit or no credit. These dealers offer in-house financing and typically sell used vehicles with lower resale values. However, there are some downsides to buying a vehicle through this type of dealer.
What is the buy here pay here law in Florida?
One downside to this type of financing is that it may not help you improve your credit score. Many BHPH lenders don’t report on-time payments to the major credit bureaus, which means that your loan won’t benefit you in terms of improving your credit score. Some BHPH dealers also require their customers to add on costly extras such as warranties and GAP insurance policies. These additional costs will increase your monthly payments and total cost of the car. URL : https://buyherepayhere.io
In addition, the interest rates that BHPH lenders charge tend to be higher than other sources of car loans. This is because these dealers take on more risk by lending money to borrowers with poor credit and may be less forgiving if you are unable to make your monthly payments.
Ultimately, you need to consider all the pros and cons before making a decision on how to finance your next car purchase. If you have a good credit history, getting approved for an auto loan should be relatively easy. But for those who have bad or no credit, buying a vehicle with a buy here pay here dealer could be the only option available. If that is the case, don’t let the fear of the unknown stop you from achieving your transportation needs.