Buying a vehicle is not always easy, especially when you have poor credit. Buy here pay here dealerships are an option for people who have been turned down by banks and other lending institutions. However, there are some important things to consider before you decide on this type of financing. Source : buyherepayhere.io
Which one is best for payment?
One of the biggest concerns is that these dealers often require a high down payment to cover their profit margins and may require weekly or biweekly payments rather than monthly. These payment amounts may be more costly and difficult to maintain, compared to a monthly auto loan. Additionally, these car lots have a tendency to jack up the price of their vehicles, meaning you’re probably paying more than the actual book value for the car.
It’s also important to note that these dealerships usually don’t report your payment history to the credit bureaus, which means that even if you make all of your payments on time, they won’t be reflected in your credit score. Additionally, if your loan is defaulted on or you miss payments, that information will be reported to the credit bureaus and could lead to a negative impact on your credit.
When you purchase a vehicle through in-house financing, the dealership will figure out what your payment number will be based on your income and other factors (whether you have a cosigner, how much you can afford to pay per month, etc). They will then only show you cars that fit within this range. This is quite different from a regular dealership, where you choose the car you want and then talk about financing.