If you do not have the best credit and you need a new ride, there is a good chance you will be offered by here pay here financing by a car dealership. Even though this type of on-the-lot financing is not a new concept, most people have no idea what this actually involves. By gaining a better understanding of the idea, you will be more prepared to make the best choices about financing a used vehicle. Here are a few of the most common questions and concerns about buy here, pay here financing:
Who Is the Lender in Buy Here, Pay Here Financing?
When you opt for on the lot financing through a used car dealer, the actual dealership acts as the lender. Even though there may be no money actually paid in full for the car, the dealership acts as both the sales and financial institution. They will handle all terms of the loan, interest, and payment arrangements.
Will There Be a Down Payment Involved?
Most buy here, pay here car dealerships will ask for a down payment. In many cases, the down payment will be more substantial than what it would be if you were choosing a different financing option. However, the amount of down payment that is required will depend on where you buy your vehicle and the overall cost or value.
Will the Payment Amounts Be Higher with Buy Here, Pay Here Financing?
One of the biggest misconceptions is that buy here, pay here automatically means a higher payment. However, this is not the case. Most dealerships will work with you to find a payment amount that will work with your budget.
Do You Have to Buy a Used Vehicle to Qualify?
It is unusual to find a car dealership that will offer in house financing for a new vehicle. However, it is not completely unheard of. Because the price tag of a new car is usually a great deal higher, it often would mean that the term of the loan would be a lot longer than most car dealerships would want to handle. Furthermore, there can be a lot more hassle due to insurance requirements and warranties.
What Happens If a Payment is Missed?
If you miss a payment and your car is under a buy here, pay here contract, you should stay in touch with the car dealer. Most of them will work with you if you are having financial difficulty. In many cases, a dealership will be more flexible when it comes to this than traditional finance companies or lenders because they create their own rules without having to follow strict guidelines by corporate offices.
If you need a new car and are looking for a financing option that will work for you, make sure to check on buy here, pay here financing. There is a good chance that there is a car dealership near you that offers this financing option and it could make it possible for you to get just what you need. If you want to know more or have other questions, try taking them to a company such as Star Auto Mall LLC to learn more.
Share20 November 2014
