Two Fees You Should Anticipate at a BHPH Dealership
When you’re pursuing a vehicle from a Buy Here, Pay Here lot in Ohio, you’re likely anticipating a good deal. The cars are traditionally less expensive at these businesses, and you probably won’t find too many vehicles that would test your budget. However, there are a handful of charges you’ll need to expect, particularly the interest rate and down payment.
Both of these fees can be confusing, especially since their inconsistent and based on the customer’s credit. To better understand what you should be anticipating, check out our guide below…
Both the interest and down payment will be relatively expensive, assuming your credit score is struggling. There are several ways to lower the interest rate, however, and you can assure yourself the best deal by shopping around for multiple lenders. There will be plenty of dealers and small businesses that are willing to finance potential purchases, regardless of the customer’s credit. This is often the main focal point of some automotive businesses, so it shouldn’t be hard to determine your potential options.
Furthermore, make sure you check in with a local, familiar bank or credit union, as your established financial relationship may be enough to convince them to approve you for a loan.
Of course, you’ll have to get all of these tasks completed within a two-week window. Luckily, lenders are aware and understanding that you’ll be shopping around for the best rate, so they’ll only count one “hard credit inquiry” against your report. If you take any longer than the suggest two weeks, you could be facing multiple hard inquiries, which never looks good on your credit report.
The down payment may probably be non-negotiable, and it can certainly be expensive, as some businesses require the customer to pay 10-percent of the car’s value upfront. Your attempts at negotiations will likely be fruitless, and you’ll probably find that the rates are relatively similar at rival dealerships (especially when you have bad credit).
Of course, you can still use these fees to your advantage. In these situations, make sure you remember the value of the down payment, and then subtract this total from your estimated cost of the car. When you’re ultimately haggling over the price, you can refer back to the expensive down payment.
When it ultimately comes down to it, you want to shop and haggle until you find the lowest total price possible. This might not be reflected in your monthly payments, but that’s alright. When it comes down to it, a customer wants to find the lowest annual percentage rate (APR) over the shortest period of time.
If you can only make the purchase work by taking out a long-term loan, the car likely isn’t in your budget. While the allure of a nice car is certainly enough to be tempted by, remember how you got in your bad credit situation in the first place. You don’t want to make that matter any worse than it already is.
Both the interest rate and down payment are inconvenient (but required) fees. Luckily, there are several ways customers can work around this charge. You’re not going to avoid these fees, but you can still be focused on receiving the best deal possible.