4 Common Buy Here
This can be true but is mostly false. I think this misconception came from the way things were years ago. Even 3-4 years ago you could get away with it but not in today’s environment. Lending practices at one point were very loose. You could get a new car with $500 down, a 650 credit score and a steady job.
But that type of thinking is what got us into this mess in the first place. Why would you want to revert to something that got you into a messy financial situation again? The thing is that we get people walking in all the time trying to put $500 down on a 10k car. Well the problem with that is most of the people we deal with people in a tough situation. Why make your situation even harder by taking on a loan you cannot afford? 4 Common Buy Here.
That $500 won’t even cover your taxes which in turn won’t put anything towards the principal of the car. This will keep your payments high and the interest has the potential of eating you up in the long run. The best thing you can do is put more money down towards the price of the car. We actually make much less money when you do this because it lowers your payments and the interest doesn’t cost you as much over the course of the loan. 4 Common Buy Here.
All the cars in Buy Here, Pay here are pieces of junk:
This has some merit but so does buying a car at a franchise new or used dealership. Really, it comes down to the management. What kind of work are they putting into their cars? Are they going for the cheap quick fix or are they trying to get a customer for life? Do they check their cars when they come in? Do they perform safety inspections? Will they let you take the car to an independent mechanic? These are all questions you must ask the dealership. If they say no to any or all of these then you should be suspicious.
The thing is a carfax only does so much these days. Everyone has to have a Carfax or they can’t tell. While its nice to have one it doesn’t really tell the whole story. So, when you get to a BHPH make sure that you’re dealing with the right people. There are plenty of cars I have seen come and go out of a BHPH that have lasted a long time. It works both ways. Its the dealerships job to make sure they are getting you into a good running car but its your job to maintain the car.
Buy Here, Pay Here is just another car dealership:
Well Kind of. Buy Here, Pay Here car lots do sell cars. There are salesman and there is a finance department just like any other dealership. Some of them have mechanics on hand as well.
What you really should look at a BHPH car dealership as is a place to qualify you. Things work backwards at a BHPH according to what you’re used to. The first step in the process is to get you qualified for a car. While at other places the first step is to sell you a car.
Those were in the good ol’ days when everyone could get financed. It didn’t matter how good or bad your credit was. Its different now. You may not get qualified for everything. A BHPH dealers job is to fit you into a car you can afford. They don’t want you to fail. They don’t want you to get stuck in another tough financial situation. it is in their best interest to get you into a car you can pay on time.
Because its a BHPH you can get into any car you want:
This is simialr to 2 of the common misconceptions above but not entirely true. I see a lot of people come on to the lot and expect to get into a really nice car. When I suggest something else they respond “but isn’t this a buy here, pay here”?
Well yeah it is but that doesn’t mean we want to put you into a situation where you will fail. Everyone wants a nice car but the reality is not everyone can afford a nice car. You have to not only consider the payments but also the maintenance and insurance that goes into owning a car. You also should prepare for unexpected mechanical fixes and keeping up with basic maintenance. Putting you into a 20K car is only going to set you up for failure.