Facts about Buy Here Pay Here Car Lots in Pennsylvania

With the increasing difficulty to apply for car loans in banks and typical dealerships, many Pennsylvanian car buyers turn to ‘buy here, pay here’ car lots in Pennsylvania. These types of dealership are attracting a select group of individuals because of the ease that they offer in acquiring a car.

What is a ‘buy here, pay here’ dealership?

Like any other typical car dealership, this type also offers cars to interested buyers. However, while your usual dealership requires financing by a third party, such as a bank, a ‘buy here, pay here’ dealership shoulders the financing of the car. So, the individual would pay the installment directly to the dealership.

This kind of dealership caters to individuals who have bad credit score and are unable to get a loan from institutions like a bank. They make it easy to acquire a car, but there are risks.

Below are some of the things you need to know about ‘buy here, pay here’ car lots in Pennsylvania before you decide to get your next car from these types of dealership:

  • Beware of dealerships that ask you to shell out a huge amount of cash for down payment.

From their point of view, these dealerships think they are taking a big risk with you given your low credit score, so they will normally charge with a high amount of down payment to ensure that they will get back as much as they invested should you decide to refuse paying what you owe. Decide what amount you can handle and stick with it—avoid taking a loan to pay off the down payment, especially if your financial situation is not so good.

  • *Think twice about extremely high interest rates.

Due to the mentioned risk above, some dealerships charge a huge interest rate as a sort of payment for their trust in you despite your low credit score. However, if you think the interest rate on the car you’re considering is extremely high, go to another dealership who can offer a lower rate. Remember that you don’t need another burden that could make your credit score even worse later on.

  • Prepare to negotiate on warranty.

Some dealerships don’t offer a warranty on their vehicle. Others do, but at a very high cost. If you find a car that you like but a warranty is not offered, try to negotiate. If a warranty is available, be sure you read through the fine print to ensure that the dealership fully explains the coverage. And if the warranty entails a huge amount of money, go look for a car somewhere else.

‘Buy here, pay here’ car lots in Pennsylvania are a good option if you don’t have any other means to get a loan from a bank or another institution. However, always be sure you’re not getting the losing end of the bargain when you go for this kind of deal. Another option is to just lease a car from a ‘lease here, pay here’ dealership—the down payment is typically lower and more affordable.