Why Checking the Interest Rate is so Important in Buy Here Pay Here Dealerships?

Most buy here pay here used car dealerships in Spartanburg, SC advertise easy loan approvals and low monthly premiums to attract customers. But what the profit-seeking ones do not easily talk about is the interest rate that they will slap on your credit offer. With a bad credit score, you are naturally expecting to pay a higher interest rate than banks but you must also ask how high an interest rate is too high. You must check the interest rates available at dealerships and question the number before signing any papers. After all, interest rates are important to BHPH dealers and the shady ones always look to unnecessarily inflate the figures.

BHPH dealers earn revenue via interest rates

Why do used car lots in Spartanburg, SC also have a financing wing? Because this is their second channel of revenue where they earn from the interest rate they charge on your loan. The higher the interest rate, the greater is their income, and naturally, many dealers look to increase this number to help their profits.

Now, the interest rate payable typically depends on 3 factors:

1.Your actual credit score.
2.The amount you are borrowing to finance the car.
3.And the span you are borrowing it for.

Surely, the first parameter is out of anyone’s control. If you have a bad credit score, your interest rate payable will be high as per the market norm. But you can control the other two factors and these are where dealerships bring in their sales experts. They drag your auto loan for 7 years, force a high amount down your throat, rope you in by reducing the monthly premiums, and leave with a fat revenue. A few dealerships may even show you on paper that they are following all the required market standards. But they secretly sell you a lemon car which is not worth what you pay.

Buy from a trusted name, stay safe

At Uncle Joe’s used cars and trucks, we function under the name of Family Auto. And this dealership with buy here pay here no credit check in Spartanburg, SC has a reputation to maintain. First, you will find quality vehicles in our lot. And your loan amount and span will be as per your convenience, not what we force you to accept. Uncle Joe’s auto loan interest rates are calculated as per the market standards as we depend on your credit report to come to a figure. Our financing business is accredited, and we are known for our transparency.

So, remember that interest rates are important both to you and the dealer. And you should be paying as much as you deserve. Finance from Uncle Joe’s and buy right. Do not get duped by lucrative offers that are too good to be true.