When you have bad credit, your options in vehicle financing are limited, which makes it difficult when you are in need of a reliable vehicle. Regardless of why your credit is bad, it may take years for you to recovery and build up a score that will allow you to get the financing you need when you need it.
Due to the large number of people in a similar predicament, some dealerships have looked for ways to provide vehicle financing to those that cannot get approved for traditional bank financing.
One of the most common solutions is financing directly through the dealership. While this option is not available through new car dealerships, there are plenty of used car dealers that offer buy here pay here used cars.
The advantages to buy here pay here used cars includes the increased availability of financing and the convenient payment options. You can mail your payment, submit it electronically, or simply drop it off while you are out running errands. More than likely you are buying from a dealership within your neighborhood anyway, so dropping off payments is convenient.
The ability to drop off your payment where you bought the vehicle also provides the added benefit of being able to pay with cash, which is ideal for individuals that do not have a checking account or are unable to get a checking account.
Depending on why you have bad credit, you may find it difficult to find a bank that will allow you to have a checking account. Financial institutions make it increasingly difficult for those with bad credit to function in many ways. Despite the fact the reasons for your bad credit may be out of your control, banks can be very unforgiving.
While some may be disappointed that buy here pay here used car dealerships are unable to extend those offers to new cars, there are many advantages in buying a used car. Primarily, the depreciation is already accounted for. When you buy a new vehicle, the value depreciates almost immediately leaving the buyer upside down on their loan.
When you buy a used car, you can negotiate the price, research the vehicle, and make sure you are getting a good price. This will ensure you do not immediately owe more than the vehicle is worth. You can have someone you trust look at the vehicle before you buy it.
While you may have repair costs associated with a used vehicle, you won’t have to worry about a seemingly endless list of recalls that seem to come with all new vehicles these days. Buy here pay here used cars also ensures you know exactly who to speak to if you have a problem with the vehical or the payment schedule.
