Auto buy here pay here near me dealerships are tempting because they allow people with bad credit to purchase a new or used car. However, they charge higher interest rates and may charge more for a car than its actual value. To avoid this situation, you should consider applying for a preapproved auto loan with a bank or credit union before visiting any buy here pay here dealerships near you. This will allow you to compare interest rates and loan terms before making any final decisions.
Offer A Competitive Interest Rate
Another consideration when choosing a buy here pay here dealership is the monthly payment. You will typically have to pay at least one month’s worth of interest in advance, which may be too high for your budget. Also, some buy here pay here dealerships require biweekly or weekly payments and may require that you pay in cash or by check. Some buy here pay here dealerships may offer a competitive interest rate, but this can raise the price of the car.
As a consumer, you should ask the dealership if they report your payment history to the major credit bureaus. If they do not, you may miss out on this opportunity to raise your credit score. Additionally, some auto buy here pay here dealerships may try to push you to purchase GAP insurance or a warranty, which you may not want. If you do decide to purchase a warranty or GAP insurance policy, the monthly payment will be higher than if you purchased the vehicle by itself.