Pros and Cons of Buy Here Pay Here Car Dealerships

Bad credit score may cause hassles for car buyers. BHPH car dealerships offer purchasers with bad credit score access to autos that they could not typically qualify for. Buy here pay here car dealerships will finance your car loan via their dealer. Instead of acquiring approved for a car loan via a lender, purchasers acquire and repay the loan via the buy here pay here car dealership.

There is nothing like the liberty and opportunity that having your own car gives you. For car purchasers with bad credit, BHPH car dealerships might be the only option. If banks have turned you down for a car loan checkout this website to find buy here pay here car dealerships near you. They know that low credit can stand in the way of getting a car, and they are here to help.

Hopes of owning a car can be ruined within instantly after many lenders have declined your car loan application. With the difficult fiscal times that we are upon us in the United States tons of car loan applications are rejected on a daily basis. The banks and finance companies use the credit scores to estimate whether an application is dependable to repay an auto loan. BHPH car dealerships can help high-quality persons who are having a challenging time. Banks and finance companies will not see beyond the credit score in an effort to help a person get a car.

Here are the pros and cons:

Pro: Buy here pay here car dealerships are readily accessible and increasing in popularity and are the quickest growing part of the auto sales market. They can found in all 50 states including: California, Florida, New York, Texas, Pennsylvania, and Illinois. Some cities with the most are: New York, Los Angeles, Miami, Houston, Atlanta, and Chicago have over a dozen buy here pay here car dealerships.

Pro: Buy here pay here car dealerships specialize in car buyers with bad credit. BHPH dealerships get the financial details out of the way first and aid buyers in determining how much you can practically afford to pay for a car. This is more advantageous than typical car dealerships that will first attempt to sell you a car only to discover later that you can’t get a car loan with bad credit.

Con: Buy here pay here dealerships are limiting in that the buyer can only pick from the cars that they have in inventory on at their dealership at that time. The amount of the buyer’s down payment will most likely determine the amount they are able to finance. You most likely have to choose a car that falls inside a particular price range.

Pro: Buy here pay here car dealerships will most likely pledge to finance buyers. This eliminates buyers the time of filling out car loan applications at dealers and being rejected over and over.

Con: Buy here pay here dealerships charge elevated interest rates than a bank would for a car loan. For purchasers with bad credit, BHPH dealerships could be their only source.

So is it an advantageous idea to obtain a car from BHPH dealerships? If you do have bad credit score and you need dependable transportation on a restricted finances then they are just want you need. If you do not have bad credit score buyers will find that a typical car dealer could be capable to offer you a more advantageous choice, a decreased interest rate, and a decreased monthly payment.

Using A Car Buying Agent Or Car Broker To Buy Your Next Car

The world of car retailing is changing, and it means good news for car buyers. The traditional way of buying a car from a dealer’s showroom has been around forever, and it’s a game where the playing field is tilted heavily in the dealer’s favour. The dealer knows all of the numbers involved much better than the buyer, and so knows exactly where margins can be increased and reduced to maximise their profits while still appearing to provide a good deal.

It’s a bit like a casino; the punters at the tables may have a few individual wins here and there, but overall the house always wins. Buying a car from a dealer is similar, in that you might get them to drop the car’s price slightly or throw in some extras, but they get it all back again on the finance package or the other extras you hadn’t realised you even needed (but were convinced by the salesman that they were absolutely essential).

The internet has gone some way to helping buyers, in that you can easily check prices from several different dealerships all over the country. But that’s still only a starting point; a dealer will often be happy to cut the price on a car if they can make it up elsewhere, and it becomes very difficult to stay on top of the negotiations when you have a new car, your part-exchange (trade-in), finance, insurance, options and accessories all making up the final numbers. The dealer is expert at juggling all these balls at once, and they know exactly how much they are making from each part of the overall deal. The customer, usually, is completely in the dark as to how much of a deal they are really getting.

More and more car buyers are now turning to a car buying agent or car broker to help them manage their car purchasing. Here the buyer gets to play on a level field with the dealer, as the car buying agent or car broker usually has the same knowledge and expertise as the dealer to be able to negotiate on every aspect of the deal to the advantage of the buyer.

The other advantage of using a car broker or car buying agent is that it saves you an enormous amount of time. Researching cars and trekking all over town to visit dealerships, getting quotes from different dealers on different models and comparing all the information is a tremendously laborious exercise. A car buying agent or car broker can take car of all the running around and allow you to concentrate on your job or enjoy your recreational time.

So what exactly does a car buying agent or a car broker do?

Let’s explain the difference between a car buying agent and a car broker.

With a car broker, you provide as much detail as you can about the car you are looking for, and the broker sources a vehicle which matches your desired specification as closely as possible.

A car buying agent offers a more comprehensive overall service, usually involving specific advice and recommendations on choosing a car and its specification to suit your needs, as well as the sourcing of the chosen vehicle. If you are not sure on the best sort of car for your needs, a car buying agent’s advice can be far more valuable than the savings he or she may be able to get from the dealer. Choosing a more suitable car can be worth a considerable saving over your whole ownership period, even if the deal on the car’s price is not as significant. Many people have bought a car completely unsuitable for their needs, and using a car broker won’t prevent that. A good car buying agent, however, will help you ensure that you are choosing a car which will do everything you need for as long as you own it.

Fees

Brokers and agents make their money from either a fee charged to the client for their service, and/or a payment or commission from the dealer. This is an important point for you as a buyer; if your broker is being paid by a dealer, they are ultimately working for the dealer rather than for you, meaning they may not be acting in your best interests to secure the best car available at the best price possible.

To ensure that your agent is acting in your best interests and not the dealer’s, you should always look for a car buying agent or car broker who has a clear fee structure and does not take payments or commissions from the selling dealer. The fees should be clearly explained, easily understandable, and relate to the service provided. If a broker advertises their services as being free, then it almost certainly means they are being paid a commission or ‘finder’s fee’ by the dealership. If an agent or broker offers their advice as free, it is unlikely to be a properly detailed and analytical report which covers every aspect of your driving needs.

A car broker will normally charge a fee based on the value of the car they are sourcing. If this is the case, you should be clearly aware of their fee structure before you commence – for example, if the relevant price threshold on their fee structure is £30,000, then a car costing £30,001 may mean a much larger fee for the broker than a car costing £29,999.

Some agents or brokers will charge a flat fee for their services, and some may charge a fee based on the level of discount they achieve from the advertised price. This means that the more money you save, the more they will make and gives you some reassurance that they are acting in your best interests.

With a car buying agent, there will normally be a fee for their advice and expertise, and a separate fee for sourcing a vehicle. Again, you should be aware of how their pricing works, but don’t be put off by the idea of paying for expert advice as it may save you thousands in the long term. You may even use a car buying agent for advice on choosing a car but handle the purchase yourself. This is often the case with company car drivers, who have leasing arrangements in place at their workplace but don’t know which car to lease.

In summary, a car broker or car buying agent can make the process of buying a car much more appealing and advantageous to the average consumer, saving considerable time and potentially a lot of money.