Are buy here pay here good?

There are lots of “Buy Here Pay Here” places that offer financing to car buyers, but there are also many different types of buy here pay here places. Some are car dealerships that offer financing through their own finance department. 

Lots of dealerships that offer financing do not advertise that they do so. A dealership might pricematch another dealership and make more money by selling at a higher price and financing through their own office. 

Some dealerships have a service department, and will offer financing to people who bring their vehicles in for service, so that they can turn the vehicle in at the end of the loan and get paid for the repairs they performed. 

In addition to the the dealerships that sell and finance vehicles, there are lots of used car lots that offer financing. Some people might be skeptical of a used car lot that offers financing, but if the lots offer a warranty, they will typically be honest with the buyers.

Good write up, but need to be careful… I have noticed with my own eyes that many people who have used these places have ended up in a much worse financial situation than they were in when they started. It might be possible to get a good car by using a buy here pay here, but the interest rates are usually going to be 3-4 times what you could get at a legitimate dealer. 

The problem is that when you have a negative equity situation, the interest you are paying is going to end up being more than the value of the car you drive. You can end up paying more for the car than you could get for it if you tried to sell it on your own.

Buy here pay here financing is a great option for someone who needs a vehicle but doesn’t have good credit. 

The way these programs work is a person can finance a car, at a high interest rate, with no credit check. The car is usually purchased through the dealer, and the purchaser usually has to put a substantial down-payment for the car. 

The interest rate is usually higher, and the terms shorter than on a traditional loan.