The Truth About Buy Here Pay Here Car Lots
People around the world suffer from the effects of bad credit scores. It affects their ability to be able to buy a lot of things or qualify for things such as a car loan. It takes quite some time until you can build up your credit score until you have stellar credit and you might need to have a car now.
Thankfully, you can try your hand at buying a used car by going to a buy here pay here car lots that offers car loans for people with poor credit scores.
However, you might be hesitant to go to a buy here pay here dealership because of all the things that you might have heard about it. Well, today we are going to bust some of those myths that surround buy here pay here car lots .
The buy here pay here dealerships offer great car loans to people with low credit scores, so it is not something that you should just brush off because of rumors. Keep on reading to find out what the real truth about buy here pay here car lots and getting auto financing from them.
The Down Payment That They Will Ask You to Pay Already Covers Most of the Car’s Value.
This was probably true back in the 1950’s when the first buy here pay here methods started being available, but this is far from the truth now.
A large majority of buy here pay here dealerships offer down payments amount that are extremely small. There are even times where they will not ask for any down payment at all.
You Can Never Pay Off Your Loan Late Because They Will Repossess Your Car Right Away.
Most buy here pay here car car lots will not repossess or take away your car after one late payment. However, you can be charged with some late fees to make up for the time that you did not pay.
On the other hand, a lot of these buy here pay here car dealerships will allow a grace period and will not even charge extra fees such as late fees. This helps them create a better impression on people who may want to do business with them.
Aren’t Many of the Buy Here Pay Here Car Dealerships Unregulated?
This myth is incredibly false, as all car dealerships that offer buy here pay here methods are all regulated. They have to comply with all the laws that are required by them by the government, otherwise they will not be allowed to run or offer you car loans.
They also report all of your payment history to credit bureaus, so you will know that they are all legitimate and are definitely regulated and allowed to run.
Getting a Car Loan from a Buy Here Pay Here car lots Will Not Raise My Credit Score.
One of the reasons that many people get a car loan from a buy here pay here car dealership is because they believe that paying off the car loan will help raise their credit score. However, a lot of people are saying that it may not even raise your credit score.
This is not true because the car lots that is offering you the buy here pay here car loan will be reporting all of your payment history to the credit bureau, hence the credit bureau will see what you are doing. This should reflect back on your credit reports and you will notice your credit score will be higher than before you get a car loan.
Buy here pay here car dealerships warranty and high deductibles.
This is true, yet false at the same time. The car lots will tell you whether or not if they offer warranties with their car loans, so if you agree with them then that would be fine because you took it on as your own responsibility. However, a lot of buy here pay here dealership offer warranties that comes with their car loans.
This is because there is a lot of competition around, so they will want to offer the best terms possible to their client.
Additionally, they are aware that if the car suddenly stops working for some reason, especially if it was not the fault of the driver, the customer can stop paying them. If your car happens to break down, a lot of the time you will be happy to know that the car dealers themselves will help you.
They’ll help you get it repaired to make sure that you are happy with the service that they are providing and will continue to do business with them.
By knowing the real truth about buy here pay here car dealerships, you will be able to get a car loan without worrying about myths that other people say.