Buy Here Pay Here car dealerships can help you finance a used car with a low down payment. These dealerships typically require as little as $500 down. These dealers will verify your income and residence in order to approve your application. Once you receive approval, you’ll pay your lender on a monthly basis.
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However, it’s important to know that not all buy here pay here dealers report payment history to the major credit bureaus. So, before you sign a contract, be sure to ask the dealership if they report payment history to the credit bureaus. If they don’t, you might lose out on a great opportunity to improve your credit score. Also, some dealers may try to upsell you on GAP insurance and warranties as a condition of your loan. These can make your monthly payment higher than you would be able to afford without them.
Another disadvantage to buy here pay here cars near me is that they often have higher interest rates than traditional dealerships. You may be paying higher interest than the car is worth, and when you drive it off the lot, you may be upside down on your loan. This is why you should carefully compare buy here pay here car dealerships before making a final decision.
Before committing to a buy here pay here car near me, think about how much cash you have on hand. Some BHPH dealerships require a large down payment, which can narrow down the choice of cars you can afford. Plus, the dealer has the right to repossess your car if you stop paying. This means that if you’re struggling to make your payments, you might end up with a car that’s worth much less than the market value.