When you have a bad credit score or even no credit, chances of buying a car are very low, as your loan application is most likely to be rejected.
Auto loan companies are very particular about the types of customers they deal with, and any type of less than perfect credit history is bound to be pushed aside.
This makes it very difficult for people having a bad, low or zero credit score, or a history of bankruptcy or defaulted payments, or even people having a low monthly income.
Buy Here Pay Here is a boon to such people because Buy Here Pay Here Car Lots offer
1. Auto loans which banks or credit societies decline.
2. Seamless transactions irrespective of your credit history.
3. Options to build a better credit score.
4. Simple processing for easy car buying.
Buy Here Pay Here is not very different from traditional financial organizations. When you have a bad credit report, banks are unwilling to lend you money.
During such times, buy here pay here car lots make sure your loan gets approved by the dealer itself, eliminating the need for a middleman, thus saving your money.
Buy here pay here car lots give you the freedom of choosing your favorite vehicle and driving away with it immediately without unnecessary paperwork and delay.
When you visit a buy here pay here car lot, you only need a proof of residence and your monthly income statement with you.
The main benefit of buy here pay here is that you will be able to own a car of your choice without worrying about whether you will get a loan or not.
Other benefits of buy here pay here car lots are
● Pre-approval – Before you select a car, your loan application is considered and pre- approved, so that you know which car you can afford, instead of constantly wondering about how much money you have.
● Trade-in – If you do not have the cash to pay the down payment while buying a car, no need to worry. You could trade-in your old car and get a good value, high-quality car.
● Improves Credit History – If you secure a good loan with convenient terms that you can pay off in regular installments, you have a good chance of improving your credit score.
By making regular payments, you actually have the scope to look at a greater number of
options a few years down the line.
Buy Here Pay here Car Lots specifically deal with people who have been turned away from traditional banks, financing institutions, credit societies or auto loan companies because of bad credit, low credit, zero credit, payment default history or previous bankruptcy.
These institutions may also deny loans for people with low monthly income, people living on student or unemployment allowance or divorcees.
Buy Here Pay here Car Lots offer hope to all such people by offering them loans to buy the car of their choice, on their terms.
With that being said, a buy here pay here dealer usually has an in-house financing unit that processes your payments and directly gets deposited with the dealer.
The vehicle finance is directly through the buy here pay here dealership, without any involvement of banks or credit societies. You can make weekly or bi-weekly payments at the buy here pay here dealership.
● Auto Loans from Buy Here Pay here Car Lots will not improve your credit score – On the
contrary, if you will be able to make timely payments every month, the report will be
submitted to credit companies, which will improve your credit score.
● Buy Here Pay here Car Lots repossess your car if you default a payment – Some
dealerships may put a fine for late payment, but your car will not be repossessed
without any negotiations.
● Buy Here Pay here Car Lots sell old, unreliable cars – Reputed Buy Here Pay Here
dealerships sell used cars with an extended warranty. They also run a thorough check
on the vehicle before putting it out for sale.
● Buy Here Pay here car dealers demand huge down payment – You will need to give a
down payment for buying a car, but it need not necessarily be huge. A financial
consultant will discuss various options with you and then you can mutually settle for a
good deal. Alternatively, you could also trade-in your existing car.