You have probably seen the road signs that some buy here pay here car lots put up, advertising with the phrase, “We Finance Anyone”. What is the story behind this form of auto financing and is it something that you should consider?
First of all, these types of car lots don’t really provide car loans. They simply hold the title to the vehicle until you’ve made all of the payments. This sounds, good right? Well, it’s not quite so simple and if you don’t know what you’re doing, you can really get taken to the cleaners.
Buy here pay here car lots sell cars, and sell them again. It’s common that they’ll get a down payment for a vehicle, only to repossess it shortly thereafter if the buyer is just a few days late on their car payment. Is that something that you want to get involved with?
Interest rates are a sore spot with these types of dealers. You can expect to pay upwards of 25% on the “loan”. That’s worse than what many major credit card companies charge for cash advances. This doesn’t do anything to help the amount of your car payments, either.
In fact, buying a car at a dealership that promises “we finance anyone” auto credit, is one of the most expensive ways to buy a car. The down payments required, the price of the vehicles (well over retail) and the interest rates are simply a bad deal for you. You will do much better by looking at other options.
You may not be aware, but there are companies that work with people that have serious credit problems. Some of them are online and can offer you much better finance arrangements than can be found with buy here pay here car lots.
http://www.BuyingCarswithBadCredit.com can help you with legitimate auto lending. If you have bad credit, there are sources that are willing to help you to overcome the challenges that you are facing, while helping you to rebuild your credit with a good auto loan.
Jason Lanier, Expert Author.
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