Lakewood Buy Here Pay Here Dealerships
Buy here pay here dealerships are in just about every city you go to. The most likely reason is that more people have bad credit than ever before. Ever since the economy crashed people have found themselves in bad credit situations for the first time in their lives. Lakewood, Colorado is a place that was hit particularly hard by the economy and hasn’t quite been able to recover ever since. Because more people have bad credit than ever before they’ve had to go to buy here pay here car lots or dealers to get financed.
What is a buy here pay here? Buy here pay here is a used car dealership you can find in Lakewood, Colorado that finances people who have bad credit, no credit, low down payment or are first time buyers.
How do I know I need to go buy here pay here? It used to be that if you had below a certain credit score you had to go. Usually a credit score of 600 or less means you need some sort of special financing or buy here pay here loan. Now banks are more picky than ever and anything less than a 700 credit score means you have to go to a buy here pay here dealership.
If you don’t have a current residence or have a shaky job history a buy here pay here is the place to go. Banks like consistency and solid job history. If you don’t have that you aren’t a good candidate to get a loan.
Why is it called buy here pay here? Because you buy at the dealership and pay there as well. The owner of the dealership personally loans you the money to buy a car, truck or suv. At another dealership your loan is sold off to a bank. At a buy here pay here you take a loan out through the car dealership.
Are buy here pay here dealerships expensive? Buy here pay here loans are considered high risk because of their high chance of default. That means that they have higher interest rates and shorter term loans. Because loans are short term you’ll own the car much faster, usually 36 months or less. Because of this payments are slightly higher than if you stretched your loan out over 48, 60 or 72 months. It’s better to get a short term loan because you’ll own the car much faster which means it won’t depreciate in value as much and you can resell it for more than if you had a longer term loan.
What kind of Lakewood buy here pay here dealerships should I look for? Not all Lakewood buy here pay here’s are created equal. There are only a select few that are any good and the rest you should stay away from. You should be looking for dealerships that accept low down payments, report your payments to the credit bureaus and give you 45 days to complete your down payment while also giving you 60 days before your first payment is due.
It’s important to report your payments so you can get out of a bad credit situation. Reporting your payments to credit agencies raises your credit score. Once you’re done paying off the car loan your credit score could sky rocket which will in turn lower your interest rates and your payments. Lower interest rates saves you a small fortune over your lifetime.
What other things should I be on the lookout for at Lakewood buy here pay here car lots? The cars don’t need to have a warranty. They just need to be fully serviced before being put up for sale. Make sure you spend a lot of time with the car. Ask the dealership for the records of service if there are any. The good Lakewood car dealerships will take care of and service their inventory. The bad ones will sell you a lemon and once they do there are no laws to protect you.