If you’ve been considering buying a car from a buyherepayhere near me dealership, you may be wondering how it works. Here’s a quick look at what these dealerships offer. They are a great option for people who have bad credit and need a quick loan, but are worried about repairing their credit. The good news is that buying a vehicle from a buy here pay here dealership can help improve your credit score. Fortunately, a reliable dealership will report your payments to the credit bureaus on time – an excellent way to increase your credit score.
Advantages and Disadvantages
Some disadvantages of a buy here pay here loan include the high down payment and the requirement to make weekly, biweekly, or monthly payments. While a buy here pay here dealership will offer competitive interest rates, these payments are often unaffordable. A buy here pay here dealership may also require you to make an in-person payment or pay in cash or with a check. Lastly, a buy here pay here dealership will typically charge higher interest rates, which means you’ll pay more each month.
Another downside to buying a car at a buy here pay here dealership is the high interest rate. The interest rate for a buy here pay here loan is often around 20% compared to three or five percent at a bank. This high interest rate can add up to thousands of dollars in interest. Moreover, the contracts typically come with additional fees. Therefore, it’s important to understand the contract and find out exactly what you’re paying before you sign up for one.