With Buy Here, Pay Here, cars become more affordable for a whole lot of people. Buying used cars Charlotte NC can be a major investment of your time and money, but in this day and age everybody needs reliable transport and sometimes a used car can be just the thing. However, if you have problems with your credit, that can get in the way of securing your vehicle, which is why this system was invented.
With Buy Here, Pay Here, cars can be financed locally, at the dealership, instead of at a bank. While banks have been the traditional source for auto funding for years now, they have some pretty stringent requirements for who they will lend money to. This has become even more so since the financial crisis wiped out life savings for millions of people and left the banks with very little money to loan. As such, many car dealers had to find a way to get people who already have lost a lot of money into cars that they might not be able to afford to buy with cash the way that they could have before. That’s why they came up with this system.
The important thing to realize about Buy Here, Pay Here: cars purchased this way are financed directly through the dealer. They are taking the risk on you as a customer, generally by setting the bar for entry much lower than a bank otherwise would. As a result, you are able to get the financing that you actually need and may be able to get a car you didn’t think you could otherwise afford. This is a great way for people to get a hold of the transportation that they need for work or other necessary activities.
There are a few drawbacks to this system, though. For one thing, it’s a short term loan, so that means that monthly payments are likely to be higher than long term loans would give you. Also, by that same token, you will probably end up paying a higher interest rate to set off the risk involved in lending to somebody with little or no credit. And if the name doesn’t make it obvious, usually this type of loan requires you to pay in person at the dealership, either by dropping off or mailing a check/money order each month, though a lot of dealerships that offer this option are starting to use online and phone pay systems as well.
Getting a car with bad or no credit can be a hassle, but you have to be able to travel, so the best option may be to look into the possibility of taking advantage of Buy Here Pay Here cars.