When you are turned down by every other credit avenue for financing your car, “Buy Here Pay Here” seems to be the best possible way out. It is probably the last and the best way to get a car in a financial crisis.
Buy here pay here (BHPH) dealers are also aware of the fact if you are coming to them, most probably your loan application is turned down by other financial institutions.
In such a scenario, the BHPH dealer provides you the finance to purchase the car. More importantly, your loan approval is guaranteed because the dealer itself is financing for your car. If you have a steady source of income, no one can stop you from getting a car finance with poor credit.
It may seem highly appealing to you when the BHPH dealers are ready to trust your capability of repaying the loan and approve it. You might also fall prey to such schemes because of your helplessness.
But if you look through the eye of a businessman, you will see they are taking advantage of your poor credit situation because they are charging you a higher rate of interest nearly double and making a lot of profit out of it. They will make more profit by financing the car than from the sale of the car itself.
It is advisable to find used car dealerships that accept bad credit near your home or workplace because most of the dealers require you to make bi-weekly or monthly payment. However, some dealers accept online payments but often you come across the dealers who ask you to physically come to the dealership and pay the money.
As you are a high-risk borrower, you have to abide by strict terms and condition of the dealership. Check this post to know more about ‘Buy here pay here’ dealership.