Is a Buy Here Pay Here Car Dealership for You?

A buy here pay here dealership is a unique kind of used car seller. It not only has used cars for sale in Spartanburg but also houses an independent financial wing that helps you to finance your car under the same roof. You can literally walk into a BHPH dealership without any pre-approved loan or enough cash to buy a used car and come out with a vehicle financed with an auto loan. However impressive the idea may sound, people still feel apprehensive about buy here pay here dealerships because the business model differs in certain aspects when compared to conventional lenders. So, are BHPH dealers for you? Let’s find out.

Do you have a bad or no credit score?

If you answered yes, then a buy here pay here used car dealership is definitely for you. With no credit score to show or a bad credit score, chances are high that you will not get auto loans from conventional lenders in the market. Banks will ask you to come back with a reliable co-signer while credit unions will either demand high buy-ins or simply turn your application down. The buy here pay here business model revolves around financing for bad credit score holders. No matter your condition, you are sure to get approved for an auto loan in a top buy here pay here dealership in Greenville and be eligible to buy a used car.

Do you have a stable pay check?

Similar to all lenders, a buy here pay here dealer will also need some form of assurance on the debt repayment that it is giving you. And your pay check is the guarantee that it needs to sell you used cars in Spartanburg, SC. Your employment has to be stable. The pay check has to cover your existing debt payments and the current auto loan that you are adding. Top BHPH dealers evaluate this by looking into your credit report where your income to debt ratio reveals the required information. But keep in mind that your auto loan still stands approved. Only the amount of loan varies depending on your income and present debt portfolio.

Are you okay with a moderately high interest rate?

You cannot expect the auto financing interest rates to be like banks in a buy here pay here used car dealership. Banks charge low interest rates as they only deal with good credit score holders. As per the market norm, lenders can offset the risk associated with bad credit scores by charging a proportionally high interest rate and that is what you get with a BHPH dealer that is ultimately also a market player. Expect your interest rate payable to be anywhere between 24-28%. But you can always beat this by paying a high down payment, limiting the loan span to 3 years, and budgeting for your used car right. If these seem smart, buy here pay here, again, is for you.