Buy Here Pay Here Car Loans For Bad Credit
Getting a car loan at a buy here pay here dealership may seem like a good idea for someone with a bad credit score. However, the process can be a little tricky. If you have a high credit score, you should be able to get a decent interest rate from a traditional dealership.
What us buy here pay here?
While the interest rate offered by a buy here pay here dealer is very impressive, it may be a little too much for you. If you have bad credit, you may end up paying twice as much for a car as if you had gone with a traditional car dealership.
A buy here pay here dealership is a business that specializes in working with people with bad credit. They use your income to determine whether or not you can afford a car loan, and then finance the loan with their own money. You may need to make a down payment and make payments on a weekly, bi-weekly, or monthly basis.
In fact, some buy here, pay here dealers even require you to purchase a tracking device on your vehicle. This allows the lender to repossess your vehicle if you fail to make payments.
In addition, many buy here pay here dealerships do not report payments to major credit bureaus. This means that you may not have the opportunity to improve your credit score. However, if you make your payments on time, you may be able to improve your credit score by a few points.