Buy Here Pay Here Dealers: Separating the Facts from the Fiction
If you are stuck in a financial rut you aren’t sure how to get out of, it can be easy to cling on to any sliver of available hope. In the same way that buyers in bad financial shape can easily buy into “easy” ways out, it can be just as tempting to believe the negativity that centers around some of these solutions. Having bad credit isn’t the same as making one bad choice behind closed doors – bad credit will not only stay with you for a long period of time, it can also lead to added stress and unnecessary headache. Rather than get down on yourself about your current state of financial affairs, realize that there is a real and worthwhile way out of the hole of debt you find yourself buried inside. The answer to your credit score shame lies with a loan known as buy here pay here in Dayton. Whether you have heard of this particular loan structure before, or are learning of it for the very first time today, there are some aspects of this process that need to be addressed.
Clearing the Air: Buy Here Pay Here Loans
It can be easy to get excited about the potential of digging yourself out of debt, and reversing your negative credit score in the process. It can also be easy to become deflated when your hopes are crushed by uninformed online articles, or by well-meaning friends and family members. Buy here pay here loans have received their fair share of negative PR over the years, some of which was deserved, but most of which was not. Today, we are determined to officially clear away the fog that has unjustly plagued this type of automotive loan for decades. Too many good candidates that would have benefitted from a buy here pay here loan opted not to take advantage of the opportunity based on rumors and the mistakes of past dealerships. If you are on the fence about securing a reputable buy here pay here loan from a reliable dealership, then continue reading through the false rumors and accusations that have given this particular automotive loan a bad name.
- FICTION – Buy here pay here loans send drivers further into debt.
- FACT – This first rumor is one of the most prevalent in the subprime lending industry. The bad reputation for buy here pay here loans was the result of poor national and statewide regulations. This lack of governance lead many unethical dealerships down a path of deceit, taking advantage of buyers in need of help. A reputable dealership with a buy here pay here loan program will not only help you get into the car you need, it will also report your payments to the proper national credit bureaus so that your credit score actually improves. Before you actually take a dealership up on a buy here pay here loan amount, be sure to head online and read about its reputation from actual sub-prime customers.
- FICTION – Buy here pay here loans are impossible to pay off.
- FACT – This second ugly rumor was born out of the discontent of drivers who ended up having to pay a higher than average interest rate on their vehicles. Buy here pay here loans are not like traditional car loans, and because of the high risk associated with this type of lending structure, dealerships require a higher rate of interest to keep themselves protected. Today, dealerships that offer buy here pay here loans are regulated in terms of the amount of interest that can be charged, which serves to better protect everyone involved. A good buy here pay here dealership will sit down and discuss your budget, income, and what you can realistically pay each month toward a car.
- FICTION – Buy here pay here loans set you up to fail.
- FACT – This is another point in which higher than average interest rates come into play. The other area to consider is the true market value of the vehicle you are considering to buy via a buy here pay here loan. Be sure that the dealer you are working with features the true fair market value on all of its available models within the program, so that you know that the amount asked is in line with what the car is actually worth. While some buy here pay here dealers have been known to scheme unsuspecting individuals into an outrageous loan that will certainly not be sustainable long term, the majority of these dealerships are truly interested in seeing their customers succeed.
- FICTION – Buy here pay here dealers require a down payment close to the total cost of the car, and take monthly payments solely for their own selfish gain.
- FACT – Back when the very first buy here pay here dealerships opened their doors in the 1970s this was, unfortunately, a common practice. Without any real government regulations, dealerships took advantage of the fact that they had “creative freedom” when it came to structuring in-house car loans. While this rumor may have been true once upon a time, the truth is it hasn’t been part of buy here pay here dealerships for several years.
- FICTION – Buy here pay here dealerships will repossess and sell the same car five times within a single year.
- FACT – As awful as it sounds, this practice, known as “churning,” was once a popular occurrence within the buy here pay here loan industry. Dealers would offer cars to buyers who they knew could not realistically make payments, then repossess those cars at the first sign of delinquency, and then sell it to another unsuspecting buyer. As terrible as this practice is, it is very rarely utilized by buy here pay here dealerships today. Reputable buy here pay here dealers like McCluskey Automotive offer these types of loans to buyers who need them, in order to see those customers succeed. The purpose of offering buy here pay here loans isn’t to make wild profits, but to help drivers who have nowhere else to turn get back on track.