What are buy here pay here car lots?

Buy Here Pay Here car lots are used car lots which sell cars on installment. As the name states, these lots are frequented by people who don’t have a very good credit history. Since these people need a car to drive from point A to point B, the dealer offers them to buy the car on cheaper terms. These lots are actually used by the dealer to generate their profit. The dealer does so by charging exorbitant interest rates on the car and very high down payments.

This is a type of car dealership that offers “testing the waters” financing, which typically means they will allow customers to purchase a car using an interest-free credit plan. This plan is especially attractive to customers with poor or no credit history because they may be turned down by traditional lenders. These dealerships will allow customers to take a vehicle home on approval, but they do require that a percentage of the sales price is paid up front. The amount of cash the customer will need to put up varies depending on the dealer. In general, the larger the down payment the better the interest rate will be. Many of these dealerships are locally owned, but a few major dealership chains also carry buy here pay here financing as well.

Most of the time you do not need a credit check or credit history. You can buy your car as you are walking out of the car lot. Usually these used cars are sold as is so you should check the car well before. If you have a good credit score with your bank you can visit your bank and borrow the money for a better interest rate.