If you have suffered with credit problems of any magnitude, it is probably crossed your mind that buy here pay here financing may be something that you need to consider.
Second chance finance car dealerships that offer to finance their own cars without a credit check can be very appealing at first glance. It is when you delve deeper into these types of financing schemes, that you realize that these are typically predatory lending outfits that will add no light to your financial future. (There are much better options.)
Buy here pay here dealerships buy cheap cars at car auctions and resell them to the public for several times what they pay for the vehicles. They cater to people that are in desperate situations and don’t feel that they have any other option. As these people don’t feel that they have any other choice, they are normally asked to pay insanely high interest rates. Add to that, that the price of the vehicle is normally inflated thousands of dollars above and beyond what it should be sold for, you will end up paying more in profit to the dealership then you can imagine.
What further compounds this is that buy here pay here dealerships have a 30% or higher repossession rate. This is not because of two and three monthly payments, this is simply from payments that are a couple weeks late. In other words, if you are late on a payment you can expect to repo truck to snatch your vehicle so the dealer can resell it to the next guy.
Buy here pay here dealers can be avoided. There are companies that are able to help people with bad credit to get into good auto loans that will help you to rebuild your credit.
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