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Buy Here Pay Here Dealers

Madhurjya Bhattacharyya
Looking to buy a car, but worried about your credit situation? Then, you can explore the option of getting one from buy here pay here dealers, without worrying about your credit score. Read on to know more.
Whenever you think of buying a car, you would usually go to the bank and apply for a loan. The bank would in turn check your credit score, besides other documents before approving one. If you don't have a good credit score, the chances of you being rejected for a loan are high, or your loan may be approved with a very high rate of interest.
There is an alternative in the form of buy here pay here, wherein loan for car buying is arranged by the car dealership.
In this case, the dealer provides you with the money to buy a car, and you need to pay the money back with interest to him on a specified date every month. Usually, such car dealerships require you to pay the money in cash or check, but there are some, who accept online or phone payments.

Financing Basics

If you have applied for a traditional auto loan with the bank and have been rejected due to your bad credit ratings, then you can think of getting one from a buy here pay here dealer.
This financing option is specifically designed for people with bad credit, unlike the traditional ones. The main difference between the two is that the latter would first show you the car and then let you know about the financing options. On the other hand, the former would speak of the financing options first and then show you the car.
The main advantage of this financing option is that you have a chance of credit repair if you make payments on time. Most dealers report positive or negative financial behavior to the credit reporting agencies, which over time can positively or negatively affect your credit worthiness.
While buying a car from one, you need to make sure whether he reports your payment history to credit reporting agencies or not. The only disadvantage is that the interest rates are high, but if you don't have any other option, then it can be the only feasible choice.
There are several questions to ask a car dealer, who deals with such buying option. Some of the most important questions are in relation to the kind of documents required, payment options, policy of late payment, location, kind of vehicles you can buy, financing options, and the car condition.
If you want to get the vehicle fast enough, you need to have all the documents handy while going to any such dealer.
The documents required include auto insurance proof, present phone bill or any other utility bill, proof of residence which includes rent agreement or mortgage document, employment proof, social security number, information of your bank account, driver's license, and references.
Once you have got the car, the next important thing is making regular payments. In a buy here pay here car dealership, you may need to make bi-weekly or weekly payments.
Usually, such dealers don't have the facility of making online or phone payment, so you'll need to go to the dealer and pay it either by cash or check. Some also have the option of automatic withdrawal from your account. So, make sure that you ask them about the payment options.
Many times, it has been found that if there's a delay in making even one payment, the dealer repossesses the vehicle. So, you need to clarify that part, as well. You need to ask at these places whether they have a policy of the grace period, and if yes, the number of days.
The location of your dealer is also an important part to consider. Otherwise, you may have to go to him all the way and make payments; a dealership situated nearby makes it convenient. If it is situated far away from the place you live or work, going there and making payments may become difficult.
Thus, if you can't get a car loan due to your bad credit, you may try this option to get your dream car. Make sure that you look at all the pros and cons and the terms and conditions before signing on the dotted line.