Why Buy Here Pay Here Dealerships Hurt Your Wallet

While some may think that there are advantages of purchasing from a buy here pay here dealership. But we are going to expose the long and short term disadvantages of puchasing from this type of dealership, and how it hurts your wallet in the long run.

 

Several Reasons Why Its Recommend To Avoid Buying Your Car From A Buy Here Pay Here Dealership: 

1. Extremely High Interest Rates: These type of dealerships charge higher interest rates in comparsion to traditional dealerships that work with banks. Since they cater to individuals with poor or no credit history, rates can be exorbitant in comparison to working with a traditional dealership that finances bad or no credit history. Thus this leads to higher overall costs for the vehicle that you are considering 
2. Small Vehicle Selection: These vehicles are older models with higher mileage and are not in great condition. Which makes it harder to find a reliable and quality vehicle that meets your needs. 
3. Vehicle Condition and Quality: These vehicles may have a history of neglect, poor maintenance or previous accidents; which could result in ongoing mechanical issues and hurt your wallet. Buy here pay here dealerships may not thoroughly inspect their vehicles and/or provide comprehensive warranties, you may end up spending your free time at the repair shop. 
4. Limited Financing Options: They typically offer in-house financing, meaning you are financing directly from the dealership as oppose to a lender. This may be appealing if you have poor credit, and it could offer flexibility in terms of loan payment. But these payments tend not to be reported to credit bureaus, meaning you won't be building a positive credit history, when you are making on time payments. 
5. High Risk of Predatory Practices: Buy here pay here dealerships have a reputation for being predatory. This can include unclear or misleading contract terms, collections practices, and reposession policies that hurt buyers. You need to read through and understand the terms and conditions of the contract before signing. 

It is recommended that you explorer other financing options, that will actually help improve your credit score. This will be benefical when it comes time to make another big purchase; such as buying a house or buying another vehicle. Auto Outlets USA is the preferred reputable dealership in the Rochester, NY and Syracuse, NY region that helps individuals with poor or no credit get financed on a reliable vehicle! Tap here to shop all Auto Outlets USA inventory.