Tag: bad credit

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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 BuyingCarswithBadCredit.com.

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Are Buy Here-Pay Here Car Lots a Good Way to Buy a Car With Bad Credit?

If you have a low credit score, you may have had a hard time getting approved for a car at a normal car dealership. You might think that you will have to use a buy here pay here car lot to be able to buy a car with bad credit.

You do NOT have to.

First, let’s look at why you don’t WANT to use a buy here, pay here dealership…

These types of dealers that offer “in house financing” on vehicles, buy cheap cars at car auctions that are high mileage, or have something about them that a new car dealership or mainstream car dealer from wanting it.

It may be that it has a bad mechanical history, has a history of a wreck and in some cases, is what is known in the car business as a “water car”. These are cars that have been salvaged from flood areas, cleaned up and run through auctions. Whatever the reason that a car ends up at a buy here pay here lot, it’s usually NOT because it’s a vehicle in pristine condition or has a clean record.

These types of car lots then take those vehicles, clean them up and charge a price for them that is above and beyond what they would sell for at a new car dealer. They can charge high prices for junk cars because the people that usually are buying them have serious credit problems. Desperation is the key word here – and these types of dealers make a business of preying on people that are “desperate to get financing”.

Then, on top of an already high price, they require a down payment that normally equals a significant portion of what the dealer paid for the vehicle. Enough said.

Also, interest rates are charged that are so high they make credit card companies blush. You can get a credit card at a lower rate than you can get car financing at a buy here pay here dealer. Don’t believe it? Call up a lot and ask.

So, you pay more for the car than book value. You pay for a car that most likely has something in it’s past that makes it undesirable. You pay enormous interest rates and end up with an overpriced vehicle with no warranty that you will owe thousands more on that it is worth. If you DO go that route, make sure you get GAP insurance to cover your debt if the vehicle gets totaled.

If you have bad credit, the best option that you have is to avoid these types of dealerships. There are companies that provide auto financing for people that have bad credit without your having to go through a dealer that finances their own cars. You can get pre-approved online and get financed with little to no down payment.

See what you can qualify for and you’ll be able to get more car, a better car and with much lower payments if you use a good secondary lender on the internet.

http://www.BuyingCarswithBadCredit.com helps with auto finance prequalifying online. See what you can get approved for, before you shop and you’ll be able to make a smarter decision.

 

 

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3 Tips For Buying a Car With Bad Credit That Will Help You to Save Thousands of Dollars

So you’ve got bad credit and you’re interested in buying a car? There are some things that you should know. Here’s a few tips that will help you to get approved easier and with lower payments and interest rates. While some of these may seem like common sense, it’s good to make sure that you have the basics covered before you go shopping.

Financing First. It’s easy to get caught up in the car shopping game where you go looking around and get your eyes set on a particular car. That’s one of the biggest mistakes that people make when buying a car with bad credit. If you want to save money and avoid the hassles of having to wrangle with the finance department about getting approved, see what you can qualify for first. This way, you know exactly how much of a car loan you qualify for. There are some places online that can help you to do that.

Stay Conservative. While it’s easy to want to buy as much car as you can qualify for, see how much value you can get instead. If you get pre-qualified to buy a $25,000.00 vehicle through an online lender, that doesn’t mean that you have to see how much car you can get squeezed into that $25,000.00 loan. See what the best value is that you can get for your money instead. After all, who doesn’t want a lower car payment?

Think Outside the Box. Most people rely on a car dealership to get them approved, and in the process get tangled up with sales pitches and the like. You don’t have to use dealership financing if you don’t want to. In fact, there are a lot of benefits of looking outside of dealerships to obtain your financing. While it may be difficult to get an affordable car loan at a local bank or credit union, you’ll find that there are some pretty good sources on the internet that can get you pre-approved for an affordable loan.

Legitimate Lenders. You’ll get the best service by using companies that are accredited by the Better Business Bureau. http://www.BuyingCarswithBadCredit.com can help to point you in the right direction towards getting approved for a good auto loan.

I’m Jason Lanier and thank you for reading.

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