Thanks for visiting my Buy Here Pay Here Cars site. This site is dedicated to anyone with bad credit and needs a car badly. I have been caught in bad finances before (long story). In some places, having a car is so important, whatever amount of money or credit you have. I hope to share some tips and insights on this topic.
Have you ever found yourself in a bad credit situation and needed a car badly? Every car lot seem to turn you down, even for a used car that is not all that expensive. If so, you are like many others. One way to get around this is to go to a buy here pay here dealer. These dealers focus on helping people with bad credit own a car. They make out bad credit car loans everyday. Some promise that you can sign and drive in as little as 10 minutes.
However, as much as it looks good on the surface, when you delve a little deeper, you may find that you are still caught in a bad situation. The mark-ups for these cars can be really high. You may end up paying double for what they will cost at a more traditional lot. This comes with the territory of buying cars when you are in a bad credit situation. Update: I have explored this further in my blog post here: http://buyherepayherecars.blogspot.com/2012/08/can-you-trust-buy-here-pay-here-car.html
Buy here pay here car dealerships have grown seriously in the last few years. For sure, there is a growing demand. Some used car dealers have shifted their business to fully focus on these deals. They offer their car loans internally. What that means is that, you will not be burdened to go through getting a car loan application approved. Right on the car lot, you can get approval.
Approvals are made generously. There is a reason for this. One is that these dealers know that they are dealing with bad credit customers and are prepared to deal with it. That is why they charge such high prices. A substantial portion, as much as a quarter of their customers bail on their payments. To make up for this, anyone who purchases a car through these lots end up paying through the nose for their purchases.
All is not lost. Even though the prices are high, the payments are low and spread out over time. So if you are in trouble with very little money, this may be the only way to go in order to get the car. Before going through one of these dealers, make sure to evaluate all other alternatives you may have in owning a car.
There are charities out there that will give aid to people who absolutely need a car to turn their lives around, but do not have to means to get there. Another way is to save up and take public transportation until you can afford to pay cash outright for a used car. It may also mean sacrificing some sleep and reworking your schedule.
In the end, the decision is up to you, after serious consideration. For some getting a car this way has been a live saver. They would do it again if the situation calls for it. I will be adding more posts about various aspects to evaluating buy here pay here car lots.