If you’ve never heard of buy here pay here or how it works then this guide is for you. There are several buy here pay here dealerships in the Lakewood area but the real question is which one should you go to? Which ones are good and how do they all work?
This guide will help you make the best buy here pay here decision. If you have any questions after reading this article give us a call at 303-623-1926.
1. What is buy here pay here in Lakewood? Buy here pay here has been around since the 1970’s ever since the savings and loans crisis. Just like in 2008 when the economy crashed millions of people were left with bad or no credit. These people still needed a vehicle but no one would finance them. This is when buy here pay here dealerships sprang into action extending loans to people with bad credit.
Buy here pay here back then and now is much different. There weren’t as many rules and regulations back then to protect consumers. Now it’s a heavily regulated industry that both protects and helps consumers finance cars with bad credit and rebuild their credit profiles.
2. Whats different about buy here pay here and a regular car dealership? The real difference between the two is that buy here pay here finances people with bad credit or no credit and regular dealerships do not. If you go to a regular dealership you often need a 700 credit score or above to get an auto loan. You’ll also need a $1,000 down, steady job history, steady income, steady living situation, and no evictions or any big credit problems.
A buy here pay here dealer in Lakewood will work with any and all credit issues even if you have a low down payment. Not all of them are good and you’ll have to find the very best ones or you can end up with a bad car and bad financing terms.
3. How long will I be paying for my car? Buy here pay here loans are short term and often times under 3 years. You’ll own the car outright faster than anywhere else. This means you’ll lose less money on the back end of the loan and can sell it for a higher price when you’re done!
4. Are buy here pay here dealerships in Lakewood more expensive? Yes they are because buy here pay here loans are high risk and have a high risk of default. Customers steal the cars, chop them up and sell them on the black market for money, abandon them on the side of the road broken down in a different states. Most buy here pay here customers are good people who pay on time but the small group that does this drives up the price of the loan on the cars because it raises the cost of business.
5. What are some benefits to going to a buy here pay here dealership? This is how you figure out if the buy here pay here dealer you’re going to is worth it or not. You’ll want to go to a buy here pay here car lot in Lakewood that reports your credit history. Not all of them do it and they aren’t required to do so either. The ones that do care about their customers. Reporting your payments raises your credit rating so you’ll get lower interest rates on future loans and lower monthly payments.
Some buy here pay here dealerships also offer gap insurance. Gap insurance covers any accidents that may happen where there is a deficiency on what insurance will pay you and how much the car is worth. Gap insurance will cover the rest if you end up owing money.
The short term loans is one of the best things about going to a buy here pay here. Don’t ever finance anything that is longer than 3 years when shopping buy here pay here in Lakewood. Only go 3 years or less or 30-60 days same as cash if they offer it.