Friday, 27.01.2012
Buy Here Pay Here Car Lots in PA

Buy Here Pay Here Car Lots in PA

Good points of a Buy Here Pay Here Car Lot

Bad credit is OK

Your bad credit is not an issue at a buy here pay here car dealer. Multiple repossession, collection accounts, new credit, no credit, charge-offs are all ok as long as you have stable income and can afford the payments.

Short Term Auto Loans

Most BHPH dealers offer Short term loans which means you are not locked into a 5 year loan like a typical dealership. Shorter loans also means a lot less interest charges as well which usually help to balance out the over priced cars.

Dealership is on the hook

Unlike a normal dealership who gets paid by the bank when they sell a car, a buy here pay here the dealership is on the hook for the entire loan. Because they hold your car loan they are less likely to try and sell you a lemon and are more inclined to work with you when it comes to problems with the vehicle. Don't be afraid to be assertive when it comes to getting your vehicle fixed, the squeaky wheel gets the oil!

Payments reported to your credit

This should be a must have when selecting a buy here pay here car lots in PA. After all the point is to get out of the bad situation right? If you are not receiving credit for your good payments you will be in the exact same situation you were in when you have to buy your next vehicle.

Liability Insurance Only

Having bad credit typically means higher insurance premiums, most buy here pay here car lots allow you to carry just liability insurance which can save you quite a bit. This is helpful since the value of the vehicle usually isn't enough to justify the added expense.

Bad Points of a Buy Here Pay Here Car Lot

Expect to pay too much for your car

No matter how you slice it no lender is going to take a risk on your bad credit without some financial gain.The rewards for high risk loans are large profit margins so don't be surprised if you are asked to pay 2-3000 over book value. What you need to watch for is the dealerships who get greedy and start buying cheaper and cheaper cars and start charging more and more for them. If you are looking at a car that has a $2500 book value and they are asking $8995 for it plus interest then it is time to run for the hills.

Higher Payments

The down side to shorter loans are higher payments since you don't have a 5 year time span to pay the car off you can expect to still pay $250 - $400 a month for your payments. Often times it is hard to rationalize paying the same payment for a 2001 cavalier then you would for a brand new car. You just need to remember you are paying it off faster.

Lower Quality Used Cars

The less a buy here pay here dealership has to pay for a vehicle the better it is for their risk.Typically there are reasons that vehicles are priced cheaper!

Switch and Bait

A lot of buy here pay here dealerships employ the switch and bait tactic. A common practice is to list a nice SUV with a low down payment. You call up, get pre-approved, and come in for the vehicle you like with the down payment required expecting to leave in that vehicle. However when you come in it turns out to be a whole different story. Usually it not feasible to get that vehicle with the down payment listed unless you are willing to accept $500 a month payments. If it looks to good to be true then it probably is. You should try to be prepared with more then the required down payment required.