Nancy Laymann
by on September 16, 2020
“You should know that you have got several options instead of being worried about auto loan approval because of having bad credit. There are Buy here pay here dealerships that would offer no credit check auto loans, however, you should be aware about all the advantages and disadvantages of availing auto loan from there dealerships.”

Pros and Cons of Buy Here Pay Here Dealerships - It is usually easy to be approved for no credit check car loans from buy here pay here dealerships since they do not run any kind of credit checks. At rare times if they happen to check your credit history, they would make you aware about the same ahead of time. This is the best advantage of availing auto loans from Buy Here Pay Here dealers – specifically when you have no credit or very poor credit.

In order to become eligible for the car loan, the buy here pay here dealers make use of your income and would need down payment to be made while purchasing the car. As long as you have enough savings to be put forward as down payment while making car purchase and a stable income, you should not be having an issue for being approved for no credit check car loans.

Another advantage is - the buy here pay here dealers have in-house cars that they offer finance for making them both – a dealer as well as a lender. Buy here pay here offer a one-stop shopping experience making the process of financing and buying a car a lot quicker and easier as compared to that from a subprime lender.

Unfortunately, Buy here pay here dealerships does have several disadvantages as well which you must take into consideration and keep in mind while looking out for auto finance. Since the buy here pays here dealers do not run any kind of credit background check while approving your auto loan application, it might also mean that they would not report your timely repayment of the loan amount to the credit bureaus. This means that you might not be able to improve your credit score despite of making timely repayments for your car financing with no credit check.

Another issue with these auto loans could be the expected down payment while purchasing the car. At the Buy Here Pay Here dealership, the amount you would be expected to put upfront as a down payment would depend on the type of vehicle that you opt to buy. Usually, these dealers tend to expect a larger amount to be paid as down payment compared to other auto loan lenders.

And the last disadvantage of opting for an auto loan from Buy here pay here dealership would be the limited choices for the selection of the car. These dealers only sell the used cars so you cannot expect to find any brand new car model in the lot available for your selection. Additionally, your selection for the car would further be narrowed down based on your affordability i.e. considering your monthly income. You might not be able to qualify for every car model available at the buy here pay here dealership.

Hence, keep your eye and mind open while visiting any buy here pay here dealership for availing cheap car finance and get the car, which you choose to buy, verified by any certified mechanic before making the purchase.
Posted in: Auto, Loan
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