Why You Shouldn't Purchase A Vehicle From A Buy-Here, Pay-Here

We are going to share with you why purchasing a vehicle from a buy-here, pay-here can set you up for financial failure. We understand the lure of purchasing from a buy-here, pay-here; but these automotive loans should be approached with extreme care.



You've seen it the flashy advertising and the to good to be true car deals. Buy-here, pay-here dealerships give a chance for those who do not qualifiy for a tradiitional loan; purchasing from these types of dealerships do not require a credit check, instead they look to verifiy income. However, purchasing from a buy-here, pay-here comes with high interest rates and terms. While you may be able to purchase a vehicle from these types of dealerships, you are financially better off avoding purchasing a vehicle with this type of loan. 

Why You Shouldn't Purchase From A Buy-Here, Pay Here: 

1. Very high interest rates: many of these loans are financing at about 20%. Which is pretty close to what you would pay on a credit card and is 4 to 5 times more than what you would pay on a traditional automotive loan. 
2. They track your vehicle: due to high repossession rates and loan defaults, most buy here pay here dealerships do require a vehicle tracking device. 
3. Inconvenient payment requirements: these loans tend to require weekly or monthy payments and these often are required to be done in person. 
4. Possibly not report to credit bureaus: if you are making payments on something you want to ensure that it is being reported to credit bureaus; this way it will help improve your credit score. 
5. Poor vehicle selection: instead of picking out the make and model you want, these types of dealerships will look at your financing first and give you a small selection of vehicles to pick from. 
6. High down payment: a bigger down payment will lead to a lower payment plan. But the higher down payment is sometimes harder for low-credit borrowers. 
7. Less reliable vehicles: many buy-here, pay-heres do their own financing. Many of these vehicles that are offered for sale are extremely old, have high mileage, and are less reliable. While you are making monthly payments on your buy-here, pay-here vehicle; you may spend a large sum of money on repairs as well. Making it hard for you to save money for your next vehicle purchase, putting you in a hard financial spot. 

If you have bad credit, your best chance is to find a dealership that will treat you fairly; such as Auto Outlets USA. We will not only help you get financed with our banks that we have established relationships with, but help answer any questions you may have and guide you along the way. If you do decide to purchase a vehicle through a buy-here, pay-here dealership, use care when picking the vehicle and the loan; if you do not it could cost you thousands of dollars.