When To Consider Embracing The Buy Here Pay Here Philosophy

June 1st, 2018 by

Blue piggybank sitting on a white table in front of a white wall

All across the nation, countless dealerships are changing up how customers buy their new vehicles each and every day. A new approach to the dealership experience, known as the buy here pay here philosophy, is making it easier for customers to find and buy their dream vehicle all in one location. This is eliminating the need for outside funding sources such as banks and credit unions since dealerships themselves are taking on a greater role in the car purchasing process.

You may wonder if this new approach to buying a car is right for you. After all, anything new can be unsettling at first. Especially if you don’t know all the ins and outs of the buy here pay here philosophy, you may not think it is worth the potential risk you may face. Thankfully, a little bit of information goes a long way.

This article is all about learning what you need to know about the buy here pay here philosophy in order to make the best choice when it comes time to purchase a new vehicle. You may find this philosphy to be your best option if you need the utmost in customer service and convenience or that traditional approach just might still be your best bet. Either way, the most important thing is to have the best results out of your next car buying experience.

The Buy Here Pay Here Experience Explained

Think back to the days when you bought your first vehicle. Better yet, think back to when your parents were buying their family vehicles. Chances are, in both cases, the experience was much of the same. You went to a dealership nearby to check out the different cars they had to sell. Perhaps you had some ideas about potential makes, models, and/or features you wanted to check out. Once you found the perfect option, then he had to go around to different banks and credit unions to start applying for an auto loan. If you’re lucky, someone would be willing to finance your next purchase.
This old-school way of buying a car left a lot to be desired. In particular, it was the exact opposite of a convenient car buying experience. In order to have all of your bases covered, including the difficult financial arrangements such as getting an auto loan, you had to visit a variety of locations, talk with many different people, and jump through an ending amount of hurdles. All of these inconveniences are the exact reason why the buy here pay here philosophy exists for you.

It didn’t take long for most dealerships to realize there is a better way to help their customers find and afford their dream vehicles. Anyways, the typical dealership was already doing half of the equation really well: finding the perfect car. The most successful dealerships new how to help their customers explore and test drive there inventories without much trouble.

The real change in the car buying experience came when dealerships realized they could handle the financing aspects as well. Instead of sending their customers a way to check out and apply for different auto loans, the dealership itself could handle most of that responsibility. In other words, customers no longer had to leave the dealership in order to get an auto loan.

This is where the idea of the buy here pay here philosophy comes into play. Instead of having to leave the dealership once you found that perfect vehicle to find an auto loan, you can do it from the convenience of the auto lot. Using a dealership financing department, they help you apply for different auto loans the same day if you choose.

The Benefits Of The Buy Here Pay Here Philosophy

The convenience of going through the whole car buying process under one roof is fairly obvious. The fewer locations you have to visit and people you have to talk to, the better. By keeping everything on the dealership lot, you will spend less time and money traveling around to get the financing you need to afford the car you want.

But there is more this financing philosophy than just those benefits.

The real advantage of a buy here pay here approach is the added customer service you get during the process. By working with people who know all about the cars in brand of the dealership along with the necessary financial information you need to know, you will get service that is tailored to your unique situation. For example, if you have specific financial challenges certain type of loan agreement to make ends meet, someone working with the dealership is more likely to find unique solutions to your situation.

This approach also allows dealerships to keep many of the advantages the old-school way of financing a car had. Using local banks and credit unions has its advantages since they are more likely to give you better deals and rates on an auto loan compared to online lenders. When you have any questions or issues with an existing loan, their local presence also makes it easier to get face-to-face help immediately.

Under the buy here pay here philosophy, all of these old-school advantages are retained. This is because most dealerships continue to work with local banks and credit unions when finding auto loans for their customers. In fact, some dealerships retain a financial lender network they send applications out. Local lenders can continue to provide competitive rates in deals while customers get the added convenience of doing business all under one roof.

Is This Approach Right For You?

In most cases, it is difficult to argue that a buy here pay here approach is in your best interest. Most of the time, buying a new vehicle makes the most sense under this kind of approach. You can find and test drive a number of different makes and models before sitting down with the dealerships financing department to explore all of your loan and leasing options.

There are, however, a couple of scenarios where this approach might not be the best choice. For one, if you’re purchasing a used vehicle, your options may be more limited. Many use dealerships do offer some kind of buy here pay here financing, but they are fewer and far between compared to new car dealerships. It is worth checking out what financing options a dealership does offer before committing to any particular loan provider.

Second, many customers like to explore their financing options on their own before speaking with an expert. This is completely fine since it gives you more active control over your car buying experience. If you prefer take this approach, you may hold off talking with a dealership financing department until you’re absolutely sure of the vehicle you want and the financing options you want to utilize.

Making Your Car Buying Experience More Convenient

Ultimately, the buy here pay here philosophy is just another option for you to consider to make your overall car buying experience better. In other words, the ultimate you have the ultimate control to shape how easy or difficult finding your next auto loan will be. Take the time to research your options, think about different possibilities, and explore what is out there.

The buy here pay here financing philosophy will always be a great option to consider regardless of your specific financial and automotive considerations. When in doubt, speak to someone who knows all the details of a particular dealerships financing program to get the best experience possible before making any financial commitments.

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