Car Lot Finance

How Buy Here Pay Here Auto Financing Works

Also known as dealer financing or secondary financing, buy here pay here auto financing occurs when dealers do not outsource customer loans to a third party financial institution. Because they are taking care of the financing themselves, they tend to be more lenient on past credit history and are more likely to accept an offer from customers with lower credit scores. They are also more likely to work with customers with lower or less stable incomes than banks or financial institutions.

Normally buy here pay here auto financing requires a down payment. From there, the customer can arrange to make consistent payments based on his or her paycheck schedule, or essentially whatever the dealer is willing to agree to.

The interest rates in buy here pay here auto financing are usually higher than those of third party financial institutions. This is a security measure for the dealer because they are taking a risk in loaning money to a customer with a less stable income or credit history. The dealer wants to be sure that they will be paid in full, regardless of any unforeseen circumstances that may inhibit the customer from making payments in the future.

If you have a poor credit history, but need to purchase a car, buy here pay here auto financing might be the best thing you can do to help improve your credit score. Some dealers report payments to the credit bureaus to help rebuild damaged credit scores. This gives you the opportunity to show the credit bureaus you are able to pay on time and in full, if you do so. Payments can generally be made online through the dealer’s website, in person, or over the phone.

Some buy here pay here auto programs offer warrantees to help buyers have peace of mind as they make payments on a vehicle that is new to them. A warrantee is important to have because it could cover a potentially costly repair should something break. If you are going to choose a financing option to help repair a bad credit score, the last thing you want is a costly repair to pay alongside the loan payments.

If you’d like to begin shopping around for the best used cars in Charlotte NC, be sure to spend tim viewing our inventory.

Our website is dedicated to helping shoppers compare vehicles from several dealers all in one place. Customers can search an entire inventory of used cars by entering their desired down payment or monthly payment amount. Our website shows search results based on the down and monthly payments rather than the total cost of the vehicle. Most dealers on our website offer buy here pay here auto financing, and this allows customers to find the best vehicle for their current financial needs.