The Pros and Cons of Buy Here Pay Here Car Lots
Posted: Sunday, January 23, 2011
by Jim Klark
Car Buying How to and More!
When you have a choice it is easy to be critical of Buy Here Pay Here car lots, but when your choices are limited because of credit problems they can be the best solution. There are many people that have met with unfortunate experiences that have damaged the personal credit score to the point that they can’t buy and finance an automobile. However if they are going to recover from those experiences they need to be able to drive and do the things that life requires. That’s when a BHPH car dealer can help.
Cons of BHPH Car Dealers and Lots
The vehicle you purchase from the Buy Here Pay Here dealer may cost you more than it would if you bought it outright from a private party. The dealer may inflate the price to pay for recovery in case of repossession and make sure that the vehicle is in good mechanical condition so the buyer will pay their loan in a timely fashion.
You will pay a high rate of interest on your auto loan from the dealership. This may be true, but the dealer is financing an automobile buyer that has very bad credit and is taking a very large risk.
The Buy Here Pay Here auto dealer requires the car payment to be made weekly or every other week at the dealership and in person. This not always true it depends on the dealer and the severity of the credit of the buyer/borrower. Payments are usually due when the buyer gets their paycheck so the vehicle payment takes priority. Also it is easier to make smaller weekly payments than one big monthly car payment.
Pros of BHPH Auto Dealerships and Car Lots
The main and most important pro of the BHPH car dealer is that you can get a car with very bad credit. There are not many options for buying and financing a car when you have very bad credit so this is a very big pro.
The car payment is due when the buyer gets paid so it comes off the top and you don’t have to worry about making the car payment once a month. It’s a no-brainer and you can’t get behind on payments.
I told you there weren’t too many pros to the pros and cons of doing business at the Buy Here Pay Here car lot or dealership. However if you are not in the position of needing a car to keep your job or getting the kids to school or anything that you need to do on a regular basis you wouldn’t understand. But if you have bad credit and must have a dependable automobile the cons are a given, but getting a good car is a huge pro.
This article was written by Jim Klark. Jim is a long time member of the auto industry and helps consumers wade through the highs and lows of buying cars conventianally or with bad credit. You can find a Michigan BHPH dealership or an Iowa BHPH dealer at Jims blog BuyHerePayHereVehicles.com
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