What Is Buy Here Pay Here Title

     Buy Here Pay Here is a used car loan offered directly from the purchasing dealer, typically for those that have poor or no credit at a higher interest rate. The difference between Buy Here Pay Here and special financing for consumers with bad credit is the loan is backed by a dealer as opposed to a bank. Buy Here Pay Here allowed used car dealers to extend financing to those customers that would not have been able to meet regular or even special financing requirements. Buy Here Pay Here was started in the 1970s during the savings and loan crisis. Dealers had to come up with a solution for the fact that credit was more difficult to obtain and vehicle prices were increasing at a rate higher than income. They found a way to supersede the banks by becoming the bank. Auto dealers would finance the loan themselves.  

What Is Buy Here Pay Here Quote

     Buy Here Pay Here opened up vehicle purchasing to those that were unable to obtain credit through regular channels. Whether the consumer had bad credit, no credit or were unable to verify income the dealer could finance the loan. Prior to regulation some used car dealers not bound by finance laws would offer loans without disclosing finance costs and total price or charging exorbitant interest rates. Practices such as these in beginning of Buy Here Pay Here cemented a reputation for dealers that many have found difficult to overcome even to present day. Dealers that offer any type of financing today are bound by financing laws. State finance laws regulate licensing, maximum interest rates, grace periods, fee amounts and more.

     A Buy Here Pay Here customer can expect to have a larger down payment amount than better credit customers. The loan term is usually shorter. Payments are made directly to the selling dealer. In general, any credit situation is accepted including bankruptcy, repossession, divorce. Any financial situation is also accepted like the inability to verify income or residence.

     Well-meaning loved ones may advise consumers to avoid Buy Here Pay Here at all costs but in most cases those loved ones likely have credit and income that can secure them a regular loan. While it should be a last resort, Buy Here Pay Here does fill a need in vehicle sales and auto loans. Credit problems are in most cases temporary and cause by unavoidable financial catastrophes. Those financial problems only compound when a consumer loses the ability to travel to and from work. For some, Buy Here Pay Here is the only way to dig themselves out of trouble and get back on their feet. It can be a life saver to people otherwise unable to get a car loan.

     Any time a large purchase is being made a consumer should consider the program and dealer that works for them. Find the best financing possible by shopping around. If Buy Here Pay Here is the only option, ensure the terms are clear. Always read your contract thoroughly and research the company you are purchasing from.

Content By:The Used Car Store

1803 Brighton Place

Pittsburgh, PA 15212