Getting a buy here pay here car loan is a convenient solution for those with bad credit. However, there are a few important things to consider before applying for this type of financing.
Can you get a car with no down payment?
The first problem with buying a car from a buy here pay here auto near me is that your credit score will not benefit from the payments you make. If you fail to make payments, the dealer may repossess your car, which could leave you in a financial bind.
Another problem with this type of financing is that your monthly payments may be higher than the vehicle is worth. If you fail to make payments, your lender may charge you high interest rates, or worse, your car could be repossessed.
In addition, many buy here pay here dealers do not report your payment history to the major credit bureaus. This means that you could have an inaccurate credit score if you buy a car through this type of dealership. However, you may be able to improve your score by making on-time payments.
If you have good credit, you can shop for a traditional car loan at a bank or credit union. However, you may have to put more effort into applying for a loan.
You may also have to make a high down payment on the car. Some lenders will allow you to make a minimal down payment, but the interest rates may be higher than a traditional car loan.
