Buying a car with buy here pay here financing can be a great option for people who have bad credit. Although many people are hesitant to purchase from this type of dealership, most BHPH lots are honest and reliable. However, there are some things to be aware of.

Can 600 credit score get you a loan?

Typically, buyherepayhere dealers dealerships will require you to make payments in person. Some will not accept checks or money orders. This can be a hassle. Another drawback to this type of financing is that the interest rate is generally higher than with traditional car loans. The average interest rate is usually between 15 percent and 19 percent.

Some dealerships may require you to pay for a GPS tracking device. These devices are designed to help monitor your payments, but can be expensive. The dealership may also want to add GAP insurance to the loan amount.

If you’re unsure whether or not your dealership will report your payments, ask. A reliable BHPH dealership will have a track record of reporting on time. However, not all dealerships report to the three main credit bureaus.

You should also look for a dealership that will let you make payments online. This is a convenient option if you are paid weekly.

Some BHPH dealers have stricter pay policies than others. For example, some will require a high down payment, while others may offer only a minimal down payment. If you have a low credit score, you might be required to make a higher down payment.

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