There are some things to consider before buying the car from a dealer that offers buy-here-pay-here financing. I wouldn’t recommend buying an automobile from a buy here pay here dealer simply because they have a car that you really want. A buy here-pay here dealer will try to stock the most desirable vehicles, based on his customer base. But, this doesn’t necessarily mean that he has the most efficient and reliable vehicles for his clients – more help.
Let’s consider the reason you might want to go at a smaller used vehicle dealer. You may not be able to qualify for conventional financing through a larger dealer or want to shell out $10 to $20k or more to purchase a newer vehicle. These smaller dealers specialize in selling vehicles that are more affordable ($2-5000).
These car lots are usually the same. The small car lot takes low-cost vehicles and mark them up a bit higher than the typical price to cover the risks of financing them to the general public. Then they sell them. They typically require moderate down payments $500-1500 and the dealer arranges for monthly or biweekly installments that are reasonable. Since they aren’t typically covered by warranties, the dealer would like to keep the terms of loan as short as they can to pay the car off swiftly. Dealers also want his money to be available before any mechanical issues occur.
It is essential for you as a consumer to understand that if you are purchasing a car from the type of dealer it’s probably because there is no choice. It is the most ideal alternative to buy the most car for the lowest down payment. You need to remember that should this be your situation it is vital that you buy the right car for the right reason.