Cambridge Massachussetts Bad Credit Automotive

Why Buy Here, Pay Here Programs Are a Bad Option For Bad Credit Car Buying

For people with bad credit, the appeal of guaranteed auto financing is hard to resist. Buy here, pay here programs advertise no credit checks which appears to be very promising. However, like many other situations in life, this offer is often revealed to be too good to be true. The thing that most people fail to see is the disadvantages far outweigh the benefits in this type of offer.

“Buy here, pay here” programs do not have to report to any of the major credit bureaus 99 percent of the time. As a result, your credit is not improved when you make timely payments. This is not the best option if you are trying to get a loan and repair your bad credit at the same time.

If you are short on funding and have bad credit or no credit at all, you may resort to a “buy here, pay here” program. Since many people like yourself do this out of desperation, dealerships of this nature get away with charging you up to two hundred percent more than you would pay if you had gone through a good online secondary lender.

No one with good sense would be willing to pay 20 to 30 percent interest on any loan, let alone a loan for a car. These establishments play on the desperation of customers which makes the reason for their continued existence quite clear.

Reputable online secondary lending companies or sub-prime lenders are more than willing to provide loan approvals, even after disastrous credit situations such as repossessions or bankruptcies. Some secondary lending companies have applications online which allow you to instantly know whether or not you have been approved and for how much.

No matter where you decide to finance your next car, make a careful decision. Educate yourself thoroughly about your options and only consider the use of “buy here, pay here” programs a last resort.

Learn more about how to buy a car with bad credit at