Small Buy Here Pay Here Dealers

If you are interested in buying a car from a buy here pay here type of dealer there are a few things you must consider before making a purchase. I don't suggest buying a car from a buy here pay here type dealer simply because they have a car that you really want. Typically a buy here pay here dealer tries to stock the most desirable cars based on his customer base and geographical location. This does not mean that he is offering the best, most mechanically sound vehicles for the money.

Let's visit the reasons that you might choose to patronize a small used car dealer. Either you cannot get approved for conventional financing from a larger dealer, or you do not want to spend $10-20,000 or more for a newer vehicle. These small buy here pay here dealers usually specialize in less expensive cars ($2-5000).

These small car lots usually operate the same. They take inexpensive vehicles, mark them up slightly more than average (due to the risk they are taking by financing them to the public) and offer them for sale. These vehicles usually require moderate downpayments $500-1500 and the dealer sets you up for biweekly or monthly payments that are relatively affordable. The dealer wants to keep loan terms short to get the car paid for in a relatively short time because they typically do not have any warranty, and the dealer wants to get his money before the car starts to have any mechanical problems.

It is important for you as a consumer to understand that if you are purchasing a car from this type of dealer, it is probably because you do not have a choice. You need transportation for you and your family, you are on a limited budget so this seems like the best way to get the most car with the least amount of downpayment. You need to remember that if this is anything like your situation it is vital that you buy the right car for the right reasons.

Let me give you a hypothetical situation. Bill is married with 2 kids. He and his wife both work, but even their combined incomes are barely enough to get by. They could afford a small car payment, but cannot get approved for conventional financing due to some unpaid medical bills. They have an old car, but it recently broke down and needs $500 in repairs. They have $1000 left from their tax refund. Here are a few scenarios:
1. Bill fixes his car for $500 and keeps $500 for future repairs. He is still driving but it is inevitable that he will be sinking the rest of that money into the car in the near future.
2. Bill goes to the Buy Here Pay Here dealer. The dealer shows him a 94 Cadillac, a 99 Ford Taurus and a 2001 Saturn that he can get for $1000 down and reasonable monthly payments, Bill has always wanted a Cadillac so he happily rides home in his new Deville only to realize he can't afford the payments and the gas in that V8 and when a few minor repairs are needed he is forced to stop driving it because he can't afford to fix it.
3. Bill goes to the Buy here Pay Here dealer and chooses the Saturn. This car is a little smaller than he would prefer for his family, but it is a four door and the 4 cylinder engine is really good on gas. This car also had the least amount of miles of the cars he had to choose from. It was the only car that had less than 100,000 miles. The Saturn performs beautifully for Bill and is paid off in just one year.

These scenarios illustrate how making prudent decisions and using buy here pay here dealers for the right reasons can be beneficial, while using them for the wrong reason can be catastrophic. Use care if you choose to go this route and always research a vehicle before you purchase. I can help you obtain financing for your next vehicle purchase or I can advise you on a purchase you are considering. Visit my website at http://www.dbbadcreditcarloans.com for more information or to initiate your FREE Consult today!