Pros and Cons Buy Here Pay Here Car Lots

Are you thinking about buying a car but you have bad credit?

Buying Car Lots


It can be a problem but that does not mean that you would not get to buy a car at all. There are still ways that you can get the vehicle that you want.

One of those is to check out what buy here pay here car lots in your area has to offer.

What is a buy here pay here car lot and what does it have to offer to you? As the name would suggest, this type of dealership offers on-site financing.

If you have bad credit history, buy here pay here (BHPH) dealers are the best options for you.

Even for car buyers who do not have bad credit scores, a BHPH dealership is a great place to get a deal on used cars.

To help guide you further, let’s talk about the pros and cons that a buy here pay here car lot can offer.



Buy Here Pay Here Lots


First off, let’s discuss the pros that you can get from this kind of car lot.


  1. In-House Car Financing


The most obvious advantage that it offers is that you can get in-house auto financing from it. It is far more convenient to purchase  a car and get a car loan from the same establishment.

For your part that would mean less trouble since you will be dealing with the same people.

You can set up your payments as weekly or monthly.

  1. Cars for Bad Credit Scores

If you have a bad credit score, you will have a hard time getting a  loan approval through the usual channels. BHPH car lots work with all kinds of car buyers. Including those with bad credit.

They might still use your credit score in order to determine what you interest rate will be. So, if you are looking for auto loans, these types of car lots will be your best bet.

Don’t believe those who say that you will be paying a very high interest rate when you go for BHPH car lots. The interest rates range from 15% to 20%.

  1. You Get a Return Policy

When you buy a car from an individual seller, you don’t get a chance to return the car if you’re not satisfied. With BHPH you can return a car within 48 hours after getting it.

This is big thing if you are not sure about the car you are getting.



There are also disadvantages when you are dealing with BHPH dealers and here are some of them.

Buy Here Pay Here Car Lots


  1. They Have Limited Inventory


This is one of the first things that you would notice when you walk in to this kind of dealership.

They have very limited inventory. So, if you are very particular about the kind of car that you want to get, you might have to look somewhere else.

  1. Interest Rates Will Be Higher

If your credit is not that good, then you would have to accept the fact that the interest rate that you will be getting is higher than usual.

Just make sure that you understand the full deal and that you read the documents before you sign anything.

  1. Be Careful about Hidden Fees

Some dealers might not be upfront about all the fees that you will eventually pay. There could some hidden fees there, which is why it is very crucial that you read the whole contract and that you understand all your obligations.

Never assume that they will tell you about all the fees.

If you are looking to get bad credit car loans, then a BHPH dealership is a great place to get started. They have the right offers for buyers like you.

Just make sure that you understand all the deals and that you are aware of what you are signing up for. It pays for you to know all the options that are available to you.