Five Tips to Remember When Shopping at a BHPH Lot
There tends to be a negative stigma that accompanies the buy here-pay here industry. We understand where the logic comes from; some consumers assume that these businesses are acting unethically because they’re requesting such high-interest rates. However, since they’re dealing with high-risk customers who have poor credit histories, this is the only way to protect their risk. Still, while the logic makes sense, consumers still find themselves avoiding these businesses.
Well, there may be a situation where you have no other choice than to rely on these buy here-pay here dealerships in order to secure your next car. Fortunately, all hope isn’t lost. Rather, there are plenty of easy ways that customers can proceed when they’re forced to pursue this particular route.
Below, we’ve provided several tips you should be following during the car-buying process. Then, when you start the search for a “buy here, pay here near me,” you’ll be fully prepared for negotiations…
Tip #1: Understand Your Budget
While we certainly appreciate the buy here-pay here industry because of the opportunity it gives to customers with poor credit, there’s no denying that this route isn’t worthwhile for everybody. To be specific, these dealerships often accompany high-interest rates with their vehicles, justifying their willingness to provide you with financing in the first place. As a result, you’ll end up paying more for the vehicle long term than a customer with good credit (and a more appealing interest rate).
Therefore, it’s of the utmost importance that you understand whether pursuing a vehicle from a buy here-pay here dealership is worthwhile. These businesses aren’t going to turn you away, even if your credit is in good standing. As a result, if you’re unaware of your financial standing, you might be committing to an unnecessarily disadvantageous deal.
How do you assure whether this is the proper route? For starters, you can get clarity on your credit situation via a number of different resources. If these reports reveal that your credit is in fact in bad shape, then your only realistic option is pursuing a vehicle from a buy here-pay here dealership. If your budget is in good shape, then you might be in the position to secure financing from a bank or credit union.
Tip #2: Determine Your Budget
Now that you’ve determined that it’s best to visit a buy here-pay here dealership, it’s time to figure out your monthly budget. It’s essential that you understand how much money you’re able to commit each month to a car payment. If you don’t, you might be opting for a deal that’s unaffordable. If you’re incapable of completing your payments in a timely manner, you’ll surely see your credit drop into even more disarray. These dealerships aren’t really in the industry in order to help out these consumers. Rather, they’re looking to get money, and it might be in their best financial interest if you can’t afford your monthly payments. In other words, don’t expect these businesses to show any remorse if you opted for a bad deal.
Of course, if you’re really planning, you’ll need to account for more than the vehicle’s value and any related fees. Rather, you’ll also need to plan for your financing agreement and applicable interest rates. When you ultimately start negotiating with the dealership, it will probably be in your best interest to see how all of these payments add up.
Tip #3: Research Vehicle’s Value
Your used vehicle options will be a bit limited when you pursue a car via a buy here-pay here dealership. However, that doesn’t mean won’t have some choices. Once you’ve explored the business’s inventory and started to target the specific car, it’s time to start researching the value of said vehicle. While buy here-pay here dealerships do make the majority of their money via interest rates, they’ll still be looking to get some value for their vehicles. Still, as a customer, that doesn’t mean you have to opt for an overvalued car. Rather, you can rely on car-valuing resources like Kelley Blue Book and eBay, and these will provide clarification on whether the dealership’s asking price is legitimate or overpriced.
Tip#4: Shop Around
Yes, there are fewer buy here-pay here dealerships than there are traditional dealerships. However, assuming you relatively near a relatively popular city, you’ll surely have several options as you’re shopping for a car. Therefore, it’s in your best interest to exhaust your options and secure the best possible deal. Sure, you might be excited about securing that offer in the first place, but it’d certainly be shortsighted to accept it immediately. Rather, it’s best to spend some extra time and assure that you’re opting for the best possible offer. At the very least, you can use a particular offer as leverage against another dealership.
Tip #5: Don’t be Afraid to Walk Away
Yes, a buy here-pay here dealership has more leverage than normal, as they’re selling you a car and providing financing. While it would appear that the car seller is in the driver’s seat (pun intended) during negotiations, it’s still the buyer who has the upper hand. Ultimately, it’s up to you to commit to an offer, and the deal isn’t finalized until you’ve signed all of the necessary paperwork.
In other words, if you believe that you might be committing to a bad deal, don’t be afraid to walk away. As we mentioned, there are dozens of dealerships that will surely be willing to work with you and your financial situation. While you might have to wait a bit longer to secure that vehicle, you’ll surely be happy about the long-term financial benefits of securing a better deal.
Well, now that you’ve determined that these dealerships aren’t too hard to figure out, it’s time to initiate the buying process. If you’ve found yourself searching for a “buy here pay here near me,” then you’ll surely want to visit McCluskey Chevrolet as soon as possible. The dealership’s helpful sales and finance teams will guide you through the whole process, and you’ll soon be driving off the lot knowing that you secured the best possible deal.