Is it a bad idea to buy a car from a "buy here pay here" dealer?

Answer 1

It's like purchasing a vehicle from anyone, Caveat Emptor.

Your best bets are to
1. Test drive the vehicle
2. Take it to a mechanic to have it mechanically inspected. Do an engine compression test to determine the conditions of the rings and valves.

The buy here pay here dealer is there to fill the gap that other dealerships don't want to deal with. Typically cars that they don't feel that there is enough profit to be made to waste their time with.

Answer 2

No. When you can't get a loan but have a down payment it's the best way to buy one. I use to buy my cars from buy here pay here all the time. It's like buying it from an individual who will let you drive it while paying off.Here are a couple of good tips people don't know and this is from several different buy here pay here, say your transmission goes out of your car and you don't have the money to fix it most BH PH have there own mechanics and will do the job for you and add the amount on you car bill if you ask them.So then you will just have to pay a little longer on your car.next tax time is coming up and they will take your W-2 for down payment.They have a tax preparer there they file your tax and apply what you need to your down payment. when your income tax comes in and you didn't' put it all down on your car they will give you the rest.Good Luck.

Answer 3

If u don't have the credit to go to a dealer a buy here pay here is a viable option. Keep in mind that for the most part charge a lot of interest and if u miss a payment have no problem repo-ing with-in days or hours. look for a "reputable" one and keep everything on the up & up and you will have no problem if u don't mind paying a little more.

Answer 4

Yes and no. But mostly yes.

For people with HORRIBLE credit (verge of bankruptcy, just filed for it, or several repos on their credit), it gives you an option for a fresh start. It's also good for kids (just turned 18) who have absolutely no credit and don't have parents to cosign for them (like me). I went to a place like that. It was nice because I was able to pay them on payday and didn't have to worry about "saving" my money for a car payment. I was very irresponsible when I was young. So this was convenient for me.

The bad thing about them: their interest rates are AT LEAST 19%. Over a course of two years (which they usually finance you for) you are going to pay more than double the original price of the car. The other bad thing is that they don't report your good payments to the credit bureau, only the bad ones you make. So you are going to have to keep track of your payments. The other bad thing: late model, high mileage cars. They don't offer any extended warranty programs for the car nor do they warranty the car for more than 30 days. If that car shoots craps after those thirty days, damn. If before the thirty days, you're responsible for 50% of the parts and labor.

In my opinion, if you are young and have no credit, open a small credit card (with a limit of about $250) and pay for that to establish some credit. You should also check into your local credit union. They have good deals for first time car buyers with low interest rates (around 6-6.75%). My husband did that and he didn't have great credit and had never purchased a car before with a loan (he used to pay cash for his cars). The CU reports to the 3 major credit agencies (Equifax, Experian, and FICO i think it is) and so it boosts your credit rating and helps with future loans you will be getting.

If you need to buy from one of those self finance joints, make sure that you TEST DRIVE the car before purchasing it! And don't granny drive it just because there's a salesman in the car with you. Drive it like you normally would. Also (if you can), drive the car in the city AND on the hiway. Let go of the wheel, if the car drifts left or right, check the steering and engine. Pull the oil dipstick and see how the oil looks. If it's black, make them get it changed first. If there's anything silver or metalicky in it, DO NOT BUY! This means that there is something flaking off from either the engine or the tranny.

All in all, they try to focus on people in bad financial situations because they know people are worried about payments, not price. And it's price that should matter. If you like a car, find out what the bluebook is on it and negotiate price. If they are assholes about it, they don't want your business that bad anyway. The best thing to do (if they won't negotiate): walk away. If you walk away like it doesn't matter, they will know that they aren't going to make any money from you and they just wasted their time, so they will work with you more.

Whatever you do, be educated going into it. Good luck.

Answer 5

Yes it usually is. Buy Here Pay Here dealers cater to people with bad credit and make their money by charging extremely high interest rates. Also, once the car leaves the lot, you really don't have any recourse if the car is defective. Caveat Emptor indeed.

Answer 6

Believe it or not, the Kelley Blue Book has a section on Car Dealers. Not only might you be able to find some information on a specific dealer... but you can find the right price to pay in advance. http://www.kbb.com/kbb/ReviewsAndRatings/default.aspx?trid=3&gclid=CJbbq7uk2YkCFSLiYAodKmfh0w

Additionally, don't forget you can get a vehicle background check at the Motor Vehicle Department (usually costs around $10 to $15 but definitely worth it).

Good luck.

Answer 7

Uh, yea. Usually those cars are POS's. They really cater to people with bad credit, but gouge you. They'll tell you they can put you in a 1991 cavilier for $50 a week. Which is 200 per month. Ridiculous. The cars have high mileage and rarely last long after you buy it.

P.S: also to avoid: YOUR JOB IS YOUR CREDIT

Answer 8

each and every between the folk who declare that the salesperson makes a fortune advertising a motor vehicle is a approaches off base! the salesperson is paid a share of the income on the deal, yet that is little or no. whilst i replaced into advertising new vehicles, the minimum value replaced into $50. This meant that if the customer have been given very plenty, we'd make little or no. normally the folk who combat the toughest for each penny have been additionally people who thought that we we creating an excellent sort of money on them, and we had ripped them off!! there is greater income in a used motor vehicle than in a clean one, yet nonetheless it is unusual for a salesperson to make a variety hundred money on a deal! If the guy you're coping with is going out of their way that can assist you you, and you opt to furnish them a tip, be chuffed. I assure that in case you have a provider subject later, the salesperson will gain this plenty greater that can assist you you (which isn't probable his job) than in case you act like they owe you something!!

Answer 9

I would stay away from that type of place. The cars are usually beat to death by the time they get there.

Answer 10

Its fine, just make sure you agree with all the contract terms. And do your homework on the car you want to buy. Don't buy anything with extremly high milege and make sure the carfax is clean.