How Does Buy Here Pay Here Work? - 0 views

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  #1 Ashley Abbott on 13 Apr 12

   

  Typically they sell cars that other car lots would only be able to send to an auction. Most new car dealers do not have lenders that will finance vehicles that have over 75,000 miles on them.
  
  When a new car dealership takes a vehicle in on trade that has more than 75,000 miles on it they typically will send us car to an auction. As there are not any new car dealerships that are competing to buy these types of cars that have high mileage an auction, buy here pay here car lots can pick up these vehicles very cheap. As buy here pay here car lots finance their own cars, there is not a lender or a loan company that is overseeing the amount of money that is being charged for the vehicle.
  
  As many people that use these types of car lots are buying their vehicles based upon payments, rather than price along with having the desperation of needing to get a car, buy here pay here dealers can get away with charging above retail price for a vehicle. In simple terms, you will pay more for a vehicle at a buy here pay here car lot then you will at a normal dealership or through a private seller.
  
  Finance Charges.
  
  Each state has its own laws and regulations regarding how much interest that a pawn shop or a buy here pay here car lot can charge. In many states, the cap on interest rates is 29% interest. On average, you can generally expect to pay over 20% interest at a buy here pay here car lot. Unfortunately, many people do not know that there are other ways to obtain financing when you have very bad credit.
  
  Down Payments.
  
  Generally speaking, from years of experience of having been in the car business myself, buy here pay your car lots work to try to get you to put down a down payment that is nearer what the dealer actually paid for the car. In other words, what you put down for a down payment covers the majority of the cost of the car for the dealer. Buy here, pay here car lots are a good way to get a car loan if you are in a bankruptcy, have just had a repossession or make below $1500.00 per month and need basic transportation. This is because those are the three conditions in which you will not be able to qualify for a normal auto loan.
  
  In contrast, if you have not had a repossession in the last 12 months, make more than $1500.00 per month and are not currently in a bankruptcy, then you can qualify for an auto loan through good sources online that work with people that have bad credit. So, you don't have to use a buy here, pay here car lot if you don't want to.
  
  Buy here, pay here dealerships are in the business of making money, and that's ok. That's what all businesses are in business to do. There are some questionable practices however, in regards to these types of car lots.
  
  One such questionable practice is that of pricing cars above retail price. At a normal dealership, one would expect to pay a thousand or so dollars below retail book value. buy here pay here car lots, Buy Here, Pay Here Car Lots - Yes, They Can Get You in a Car Today, Buy Here, Pay Here Car Lots - Yes, They Can Get You in a Car Today

   

  <div class="cArrow"> </div><div class="cContentInner">Typically they sell cars that other car lots would only be able to send to an auction. Most new car dealers do not have lenders that will finance vehicles that have over 75,000 miles on them.<br /><br />When a new car dealership takes a vehicle in on trade that has more than 75,000 miles on it they typically will send us car to an auction. As there are not any new car dealerships that are competing to buy these types of cars that have high mileage an auction, buy here pay here car lots can pick up these vehicles very cheap. As buy here pay here car lots finance their own cars, there is not a lender or a loan company that is overseeing the amount of money that is being charged for the vehicle.<br /><br />As many people that use these types of car lots are buying their vehicles based upon payments, rather than price along with having the desperation of needing to get a car, buy here pay here dealers can get away with charging above retail price for a vehicle. In simple terms, you will pay more for a vehicle at a buy here pay here car lot then you will at a normal dealership or through a private seller.<br /><br /><strong>Finance Charges.</strong><br /><br />Each state has its own laws and regulations regarding how much interest that a pawn shop or a buy here pay here car lot can charge. In many states, the cap on interest rates is 29% interest. On average, you can generally expect to pay over 20% interest at a buy here pay here car lot. Unfortunately, many people do not know that there are other ways to obtain financing when you have very bad credit.<br /><br /><strong>Down Payments.</strong><br /><br />Generally speaking, from years of experience of having been in the car business myself, buy here pay your car lots work to try to get you to put down a down payment that is nearer what the dealer actually paid for the car. In other words, what you put down for a down payment covers the majority of the cost of the car for the dealer. Buy here, pay here car lots are a good way to get a car loan if you are in a bankruptcy, have just had a repossession or make below $1500.00 per month and need basic transportation. This is because those are the three conditions in which you will not be able to qualify for a normal auto loan.<br /><br />In contrast, if you have not had a repossession in the last 12 months, make more than $1500.00 per month and are not currently in a bankruptcy, then you can qualify for an auto loan through good sources online that work with people that have bad credit. So, you don't have to use a buy here, pay here car lot if you don't want to.<br /><br />Buy here, pay here dealerships are in the business of making money, and that's ok. That's what all businesses are in business to do. There are some questionable practices however, in regards to these types of car lots.<br /><br />One such questionable practice is that of pricing cars above retail price. At a normal dealership, one would expect to pay a thousand or so dollars below retail book value. <a rel="nofollow" href="http://ashleyabbott48.obolog.com/">buy here pay here car lots</a>, <a rel="nofollow" href="http://www.ziki.com/en/ashley-abbott-14+1108947/post/The-Cold-Hard-T+14307483">Buy Here, Pay Here Car Lots - Yes, They Can Get You in a Car Today</a>, <a rel="nofollow" href="http://vasfoq41222.newsvine.com/_news/2012/04/13/11182923-the-cold-hard-truth-about-buy-here-pay-here-car-lots">Buy Here, Pay Here Car Lots - Yes, They Can Get You in a Car Today</a></div>

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