A close up shows a red toy car and a man filling out paperwork for a buy here pay here car loan.

Buy Here, Pay Here Car Loans

A common problem for many car buyers is the inevitable question of how to cover the cost of the car. After all, a vehicle is the second most expensive item the average person will buy in their lifetime. Even more to the point, buying a car happens multiple times for most people since cars are not built to last forever. This is why systems such as Buy Here, Pay Here car loans came into being. These loans are designed to offer an alternate method of financing for those customers who may not be able to turn to their bank or a credit union for an auto loan. Buy Here, Pay Here car loans can be a lifesaver for many who otherwise would have no way of financing an auto purchase.

Buy Here, Pay Here car loans are made to streamline the process of taking out a loan for a car. The dealer and the lender are the same entity in a Buy Here, Pay Here system. This means that the borrower seeking the car will be approved for the loan and make the loan payments to the same dealer that is selling them the car. This cuts out any sort of middlemen or third party. This system is best for those with poor or no credit, as having everything handled in-house cuts out the need for tons of banks to run your credit.

How the System Works

Buy Here, Pay Here car loans start with the discussion of finances first. This is wildly different from traditional car dealerships, where they want to show models or push a customer toward test driving before even bringing up any sort of financing or payment plans. At a Buy Here, Pay Here business, they will ask for the customer’s budget right out of the gate to ensure they stay within that budget rather than work their way out of a sale by suggesting products the customer can not afford. This method is upfront, honest, and the best possible starting point for customers as well as the business. The loans in question are also specifically tailored to fit the customer’s needs.

The other massive difference, as noted above, is that the Buy Here, Pay Here model has the dealership acting as both seller and loaner. This means you can handle everything through one location and one finance department. This method also eliminates many fees and extra charges since there are no middlemen involved in the loan or payment collection process. The entire process is simple, already streamlined, and designed to help customers meet their needs as soon as possible.

Applying for a Buy Here, Pay Here loan usually takes no more than an hour for approval, often requiring much less time. The process only requires that the applicant is over the age of eighteen, has a valid driver’s license, and has a specific monthly income, usually under $1500 a month after taxes. Applicants will need proof of income in the form of pay stubs as well as utility bills to serve as proof of residence. Down payments are also required on the day of sale, so come prepared with some cash for the down payment. These, like the monthly loan payment, can vary depending on the customer’s finances, the car they choose, and the terms of the loan.

The goal and purpose of Buy Here, Pay Here businesses is to give people the second chance they might need when their credit score is low or nonexistent. Everybody deserves reliable transportation, and Buy Here, Pay Here businesses are made to help with this process by providing a way for you to obtain a reliable vehicle in a way that you can afford. Buy Here, Pay Here loans can also help you boost your credit score as they require you to make consistent payments on your vehicle. Nothing helps your credit score more than making on-time payments, and Buy Here, Pay Here car loans provide you with a way to do that with a vehicle you can afford.

A close up shows increasing stacks of quarters with a blurred car in the background.

Why Buy Here, Pay Here Works

Going to a Buy Here, Pay Here style car dealer does more than just make the monthly payments easier to meet. It streamlines the entire process and makes affordability the focus. After all, people who can’t make their monthly payments are not the sort of business that car dealers usually seek out. By working with their customers in a Buy Here, Pay Here model, the dealer ensures increased business from customers who are able to pay.

Working with a Buy Here, Pay Here dealership can give customers hundreds of vehicles to choose from, with all prices falling within their desired budget. That’s right; you are not necessarily limited in the options you have to choose from. However, at a Buy Here, Pay Here dealership, you will only be shown vehicles after you have settled your budget. This saves you from falling in love with a vehicle you can’t afford. After all, the point of a Buy Here, Pay Here dealership is to get you a reliable vehicle that you can afford and help you build your credit, neither of which you can do if you fall in love with a vehicle that’s too expensive.

Let’s not forget about how Buy Here, Pay Here dealers can help you improve your credit score. When you buy a vehicle through traditional means, your credit score is sent out rapid fire to a bunch of banks and lenders until someone offers you a loan. Each time your credit is denied, your score takes a small hit, and if this happens a lot in a small amount of time, that hit can become massive. Buy Here, Pay Here dealers usually don’t run your credit and just base their loan terms off of your income. That means your score won’t take any hits, and as long a you make your payments on-time, your score will actually go up because you will be proving that you are a responsible borrower.

All vehicles on the lots of these dealerships are thoroughly inspected, with any that do not pass inspection being removed from potential sale. These cars are still meant to be driveable and reliable, so you don’t need to worry about buying a lemon. It’s this mixture of affordable pricing, varied and reliable options, cutting out the rapid-fire credit checks, and an opportunity to improve your credit score that makes Buy Here, Pay Here dealerships so beneficial to work with.

A close up shows a tachometer with financing labels on it.

A Loan for Every Buyer

Buy Here, Pay Here car loan dealers are designed for a simple process, allowing one payment to be made to a single entity each month. These payments can be made monthly, bimonthly, or even weekly, with autopay options available for any customers who don’t want to worry about writing a check out every month. These companies have a very simple goal. They just want to make vehicles available for more people, to give everyone a little taste of freedom behind the wheel. With a Buy Here, Pay Here dealer, vehicle buyers can rest easy, knowing that they are making the correct choice for affordable payments and guaranteed safety.

Having an affordable vehicle is what matters at the end of the day. Anyone in need of a quality vehicle with low affordable payments that won’t break the bank would do well to check out a Buy Here, Pay Here dealership in their area. You may be surprised at what vehicles you can qualify for and how easy it is to make payments when the vehicle you buy is designed to fit into your budget. Don’t let poor credit or other factors keep you from buying a reliable vehicle; check out the opportunities that can arise when you visit a Buy Here, Pay Here dealership.