As the name implies, buy here pay here car dealers are car dealers who sell used autos with a difference. You have to pay for the vehicle directly to the dealer, without any outside financing. The people who buy from these dealers are usually those who don’t have the means of buying a vehicle from a regular used car dealer or perhaps have bad credit wherein a bank won’t finance their loan. However there are some questions you have to ask before buying any vehicle from them for your own protection.
Will the credit bureau know about this transaction?
The main point of buying from buy here pay here car lots Houston dealers is to rebuild your credit. So if you buy your vehicle from a dealer who does not report the transaction to the credit bureau only means you end up with an unimproved credit score after paying off the automobile. So make sure you use a buy here pay here dealer to help rebuild your credit and not upset it.
What’s the interest rate?
This is a very important question as the interest rate is going to be very high, above 21% or even higher. In fact, most buy here, pay here dealers sell their cars based on monthly payments. So if they advertise a used vehicle available for $500 down and $50 as weekly payment, while it sounds good, you end up paying double for a used vehicle.
Can I inspect the car before buying it?
Okay, you have come to a buy here, pay here dealer to buy a used vehicle because of your tough financial position. However this does not imply that you have to skimp on a pre-purchase vehicle inspection. You have a right of inspecting the automobile before buying it so beware of these dealers who don’t let you inspect the vehicle. It’s usually the less reputable dealers who don’t let you inspect the vehicle. It’s not surprising as they are in the business not to sell used cars, but to sell you high-interest financing.
What about warranty?
Buy here, pay here dealers actually have to inform you about the state law as it varies by state. According to the Federal Trade Commission’s website, you should get an original or copy of the final buyer’s guide posted in the used car you buy from the dealer.
This guide should reflect any negotiated changes existing in warranty coverage and becomes part of your sales contract while overriding any contrary provisions. If the vehicle is sold in an ‘as is’ warranty, it implies the car is sold was it is, and you can’t actually expect any warranty for it.
As state laws may differ, it’s better to check with your state’s consumer protection bureau for information on warranties for used cars. Moreover, always remember that the automobiles sold at buy here, pay here car lots Houston dealerships don’t come with a manufacturer warranty.
These are the four most important questions you should ask a buy here, pay here dealer before buying a vehicle from them. Of course, there may be some other doubts to clear, but these are the main points to remember.