These car lots that allow you to buy here and pay here are becoming more popular. You may be wondering what they are and how they differ from regular dealerships. You may also be wondering what you should know about them. Read more?
The simple answer is likely. You should be able to trade in an older car that isn’t being sold on regular lots. You need to be aware of your credit history if you have been hammered by the current economy. You need to be aware of your requirements if you are looking for a car.
Car lots that buy here, pay here are different from most other car lots. They see financing as their main goal. This is not a different model from regular car lots. Traditional methods involve working with banks and other third parties to finance your purchase.
Buy here, pay here car lots allow you to finance your vehicle in-house, often through the dealership. You work with the dealership to finance the vehicle and make the payments directly to the lot. This is a huge benefit for the car company because it allows them to be flexible in who they work with.
Many traditional car lots now offer something similar to buy here, pays here car lots. Instead of buying here, they’ll say “we finance” or something similar.
However, there is a drawback to this arrangement. They offer flexibility but will usually charge you higher interest rates than you would pay at a bank. They are willing to take on extra risk and are seeking extra reward.