Buying a car is one of the biggest purchases you will make in your life. While it’s an exciting process, it can also be stressful, especially if you have bad credit or a low income. If you’re looking for a way to finance your next car in Lumberton, NC, you might consider a buy here pay here dealership. In this article, we’ll explain what buy here pay here dealerships are, how they work, and what you need to know before you buy.
What is a Buy Here Pay Here Dealership?
A buy here pay here (BHPH) dealership is a type of car dealership that offers financing directly to customers. Unlike traditional dealerships that work with banks and other lenders to provide financing, BHPH dealerships finance the cars they sell themselves. This means that they are often more willing to work with customers who have bad credit or no credit history.
At a BHPH dealership, you’ll typically find a selection of used cars that have been inspected and serviced by the dealership’s mechanics. The dealership will then offer these cars for sale and provide financing to customers who want to buy them. BHPH dealerships are known for their flexible financing options, which can include weekly, bi-weekly, or monthly payments.
How Does Buy Here Pay Here Financing Work?
When you buy a car from a BHPH dealership, you’ll typically need to make a down payment. This down payment can be as low as a few hundred dollars or as much as several thousand, depending on the car and the dealership’s policies. After you make your down payment, you’ll need to make regular payments on the car until it’s paid off.
Unlike traditional car loans, BHPH financing is often more expensive. This is because BHPH dealerships take on more risk by financing cars themselves, and they often charge higher interest rates to compensate. However, if you have bad credit or no credit history, BHPH financing may be your best option for getting a car.
What Do You Need to Know Before You Buy?
Before you buy a car from a BHPH dealership, there are a few things you should know. First, make sure you understand the terms of the financing agreement. This includes the interest rate, the length of the loan, and the total cost of the car. You should also ask about any additional fees or charges that may be added to your payments.
Second, make sure you understand the condition of the car you’re buying. While BHPH dealerships inspect and service their cars before selling them, they may not be in perfect condition. Make sure you take the car for a test drive and have it inspected by a mechanic before you buy.
Finally, make sure you have auto insurance before you drive the car off the lot. Most BHPH dealerships require proof of insurance before they’ll let you take the car home. If you don’t have insurance, you can typically purchase it through the dealership or from a third-party provider.
Conclusion
If you’re looking for a way to finance your next car in Lumberton, NC, a buy here pay here dealership may be your best option. With flexible financing options and an understanding of customers with bad credit, BHPH dealerships can help you get the car you need. However, before you buy, make sure you understand the terms of the financing agreement, the condition of the car, and your insurance requirements.
