How To Successfully Work With Buy Here Pay Here Dealerships
If you’re in need of a car but haven’t been able to get approved for financing at regular dealerships, banks, and other financial organizations, a Buy Here Pay Here dealership may be your only chance at having those all-important wheels. These dealerships have had a difficult reputation in the past, but newer laws and a decision by Buy Here Pay Here dealerships to provide better service mean that you can successfully buy a car without problems if you take a few preliminary steps.
Know What They and the Cars Offer
You know that Buy Here Pay Here dealerships do the financing themselves, but you should be aware that the cars on the lot are generally high-mileage cars that are also older. Start researching ratings for different makes, models, and years. Don’t concentrate on just a couple of models you want; find out what the dealerships in your area usually offer and look up those and similar models. That way, when you go to buy a car, you’ll have a better idea of which models might be a better deal and which might be overpriced.
When you visit dealerships in your region, talk to the salespeople about the interest rates they tend to offer, payment amounts and frequency, and payment locations. You need to know if paying at the dealership every week is the norm for your area, for example, or if there are dealerships that are willing to give you more options for payment. Look for dealerships that will offer warranties even if the state doesn’t require them to offer warranties. Don’t buy a car at the first dealership you visit — let them know you’re shopping around and want to see what they offer.
Check Your State Laws
Some states have more requirements for Buy Here Pay Here dealerships. For example, California requires these dealerships to offer warranties on the cars they sell, as well as listing the fair-market values for each car. In 2016, these dealerships are now also required in California to give buyers more information and warning regarding the use of starter interrupters, which allow the dealership to remotely turn off the vehicle and make it inoperable if the buyer hasn’t made his or her payments.
Get a Risk-Based Pricing Notice
A risk-based pricing notice is a requirement under the Fair Credit Reporting Act. It’s essentially a notice that tells someone that the prices he or she will pay may be worse because of the person’s credit. If the dealership does give you one of these notices, it’s a sign that the people there take the law seriously and are actually paying attention to credit and financing records. Unfortunately, there are some dealerships that skip this step, meaning they might be cutting corners on other legal requirements.
Get the Car Inspected
You can get a Buy Here Pay Here car inspected before you buy it, and given the age of some of the cars you’ll see, you definitely want to complete this step. Good dealerships will let you bring the car to a mechanic for an inspection so you can see if you need to add costs of repair to the overall effect on your budget when you buy the car.
Buy Here Pay Here dealerships want you to successfully buy and pay for the car. Trying to get the car back from you if you can’t pay is not something the dealership wants to do as it just takes time away from selling other cars. Find a dealership that follows state and federal laws and that gives you better leeway and better options, and do your best to work with the people there to ensure you can make your payments. For more information, talk to a professional like Autobank of Kansas City.