The Growth of Buy Here Pay Here near Indianapolis in 2018
If you have bad credit, no credit, or a short credit history, getting an auto loan the traditional way can be complex. Many banks, credit unions, and third-party lenders are reluctant to approve auto loans for people with questionable credit, making it difficult to afford a car otherwise. There aren’t many people that can foot the bill for the entire cost of a car in cash, so how are people supposed to get a car if they can’t get approved for a loan? The answer may be a buy here pay here near Indianapolis.
Buy here pay here dealerships are expected to see exponential growth in 2018. Back in the first quarter of 2011, buy here pay here dealerships had cornered 9.5 percent of the market share in used car financing. By the third quarter of 2015, the market share of buy here pay here dealerships had dropped to about 6.2 percent. However, buy here pay here dealerships saw a rise in the market share since then, increasing to about 11.6 percent. Interestingly, it is a decrease in competition that has resulted in the rise of the buy here pay here dealership. During the Great Recession, many buy here pay here dealerships simply couldn’t thrive in the tough market conditions. The decrease in competition allowed remaining buy here pay here dealerships to grow and better address the needs of the customers.
There are many reasons why the growth of the buy here pay here industry in 2018 may benefit car buyers. If you would like to speak to someone about your options, visit your local buy here pay here near Indianapolis or beyond.
What is Buy Here Pay Here?
When a dealership advertises itself as buy here pay here, that simply means that the dealership does its financing in-house. In-house financing means that you don’t have to go to a bank, credit union, or third-party lender to get your auto loan. You’ll set up the loan with the dealership and make payments to the dealership, generally speaking. Buy here pay here dealerships are a one-stop shop for your car and your loan. This convenience takes part of the hassle out of financing your new vehicle.
Sometimes, dealerships won’t necessarily label themselves as being a buy here pay here dealership. More often, you’ll see dealerships with signs that say something like “we finance!” or will otherwise advertise their own financing departments. Any dealership with in-house financing qualifies as a buy here pay here dealership.
Getting your loan through a buy here pay here near Indianapolis is easy because the dealership wants to sell you a car. This means that the dealer will grant loans to people with no credit or poor credit. Usually, anyone with a verifiable address and proof of employment will be approved for an auto loan. However, being a risky investment usually means that you will be dealing with interest in the double digits–plan for 15 to 20 percent interest rates.
Benefits of Buy Here Pay Here near Indianapolis
Get a Car
Because few people can afford to pay for a car in cash and few institutions will lend money to people with a poor credit history, buy here pay here dealerships are often the only option for people with bad credit to get a quality car at an affordable price. Buying from an individual means that you can’t trade in your current vehicle and that you don’t have access to the vehicle’s complete history. With buy here pay here dealerships, you can get a certified pre-owned or even a new car while trading in your current vehicle towards the down payment. Additionally, many buy here pay here dealerships include the vehicle’s warranties or offer deals on maintenance that buying from an individual seller would not provide.
The biggest benefit to shopping at a buy here pay here dealership is the opportunity to build up your credit. Since most people are guaranteed to be approved for an auto loan regardless of credit history, you will be able to build credit with each on-time payment you make. Do your research because some dealerships require weekly payments, in-person payments, or a 20 percent down payment for the vehicle. Also, make sure that your dealership reports to the major credit bureaus so that your hard work making payments will pay off in the form of a good credit score.
Buy here pay here dealerships are more likely to take older or more worn-out cars for a trade-in than a traditional dealership. This means that you can easily trade in your older car for a newer model, using the trade-in value towards the cost of the down payment. The lenient trade-in policies make it easier for you to purchase a new vehicle.
The growth of the buy here pay here industry in 2018 will benefit you as a consumer in a lot of ways. The buy here pay here industry is customer-driven, meaning that there are many benefits to the consumer when shopping at a buy here pay here dealership. The industry had to adapt in order to survive, and you as a customer are reaping all of the benefits from those changes to market and the growth in the industry. Buy here pay here dealerships will approve most people for a car loan regardless of credit history. This will give you the opportunity to build your credit score. Buy here pay here dealerships also offer you all of the benefits of certified pre-owned or even new vehicles, including warranties, maintenance services, and lenient trade-in policies. All of this convenience is to make your life as easy as possible when purchasing a new vehicle from a buy here pay here near Indianapolis.