There are much better alternatives.
You can get a real car loan with good interest rates and lower monthly payments. If you have bad or poor credit, you may think that the only option that you have is to use a buy here pay here dealer. Many people with credit problems think this because they have been turned down by a couple local car dealers or banks and think they have no other choice.
That’s simply not true.
There are sources online (http://www.BuyingCarswithBadCredit.com) that can show you how to get behind the wheel of a new or used car, truck, minivan, sport utility or even a motorcycle with legitimate financing options. Don’t think that you can’t get a real car loan just because of credit problems. Cars are collateral and are secure loans. By being a secure loan, there is an asset (the vehicle you get financed) that the lender can take back to recover the money that they’ve loaned. That’s why it’s easier to get a car loan when you have bad credit than it is to get a credit card!
Buy here pay here car lots charge very high interest rates.
In many cases, they charge higher interest rates for cars than you can expect to pay for a credit card. This results in much higher monthly car payments and you may quickly find that most of your car payment is going to interest and finance charges rather than the actual vehicle itself.
Buy here pay here car lots also charge more money for cars.
The prices are much higher at dealers that have in house financing because there is no bank that they have to get the price approved through. This can put you in a compromising situation when you really need a car and need one quick.
Buy here pay here car lots also require down payments.
Sometimes, the amount that you are asked to put down for the down payment equals what the dealer actually paid for the car. In this scenario, you are paying the dealer for the car and the payments and interest charges that you have to pay for a couple years amount to nothing more than pure profit for the dealer.
There are other options that are available to you through lending networks.
These lending networks can help you to get a REAL car loan, regardless of you past credit history.
In many cases, you can get a real car loan with little to no money down.
Monthly payments for car loans are based on monthly income, so you won’t end up in something that you can’t afford. Remember, buy here pay here car lots are a last resort and should only be used if there is no other option.