What Exactly Is a Buy Here Pay Here Car Lot?
Auto dealerships or “lots” that provides in house financing for vehicles are typically referred to as buy here pay here car lots. Usually small establishments with limited inventory, these lots offer auto financing to anyone that has a down payment and that will agree to the financing terms that are set forth by the dealer in a simple finance contract.
Down Payments…
It is common that these dealers require a 10% down payment and in some cases, more.
Interest Rates…
Finance charges can be very high in comparison to more traditional lending routes.
Payment Terms…
Payments can be arranged to be made directly to the dealer weekly, biweekly or monthly depending on the dealer.
Educate Yourself…
Care should be taken to review all terms and conditions of the sale and financing agreement to ensure that you understand the risks involved.
