Ever hear about those Buy Here Pay Here vehicle lots and think, "What's the catch?" Trust your instincts; occasionally it's one you can live with, but always there is a catch. These locations provide a bypass when established banks close doors in your path. Your credit score probably resembles a bowling score. Perhaps you simply ran a poor run. Either way, these dealers welcome you in, all smiles and solutions. Let us cut through the murk.
Picture this: You arrive, and there’s no intimidating banker in sight. best car dealerships for bad credit
The dealer's financier as well as his salesman You make a down payment—usually more than what a reputable dealer would ask. You sign the papers right there on the lot. Then you drive off in your “new” ride, making payments directly to the dealer. Sounds delightful, right? But hold the celebration.
Now for the catch: interest rates. This is where it hits your wallet hard. Rates can shoot up to painful levels. You might end up paying double what your neighbor did for the same car. Each payment stings a little. Miss a payment? That car’s gone before you can even say "repo." These agreements include repossession terms that virtually guarantee a repo should you find yourself unable to maintain. Others even set up remote kill switches or GPS trackers.
But I need a car to get to work. Absolutely fair. Sometimes you find yourself boxed in if public transportation is not a choice. Keep your wits about you then. Examine the vehicle. Know its history. If your cousin’s buddy is an ex-mechanic, offer him pizza to give it a once-over.
Usually in person, payments arrive every week. That’s tough if you work odd hours and they demand cash at the lot. Forget to pay one week? Talk to them—being upfront has saved many people’s vehicles.
Reading through paperwork is like navigating a maze; use eagle eyes. Forget the legalese; ask direct questions. Ask things like: “What if I’m late one day?” After one missing payment, will you actually repo? Ignite the guilt instead of it. That customer is you.
Sometimes consumers with damaged credit use BHPH dealers as a stepping stone—pay off one car, create a stronger credit record, then move to a conventional lender. This is not a horrible approach to make, well, better lemons.
Therefore, be completely awake if you consider rolling this dice. Prepare everything in writing. Remember, this is a business, not a favor. Even if it's not dream-come-true flawless, make sure the offer suits you too. While some trips cost more than others, occasionally you just need wheels that transport you to work, the grocery store, and back home—no credit check problems connected.