Searching for a car loan with bad credit in Ohio can be a pain. If your credit score is too low, chances are you’ll be hard-pressed to find a bank, credit union, or average car dealership that wants to take you on for financing — and can you blame them? To these places, you might be considered a financial risk they are not willing to take. If that’s the case, then a buy here, pay here dealership is your last resort. Don’t think of it as a last resort though, think of it as the Superman of car dealerships. Instead of hopping onto the bandwagon of hate, realize that they are a dealership willing to take a risk that no one else will.
Let’s discuss some of the other lesser known benefits gleaned when buying from a buy here, pay here dealership. With all the negativity surrounding them, people might not realize just how beneficial these places are.
One Stop Shopping
What other dealership do you know of that provides a one stop shopping experience? Buy here, pay here dealerships literally do everything there. This includes figuring out your credit score, providing you with a loan, picking the price range/car(s) you can drive, and directly accepting your loan payments – as opposed to getting a loan from a bank, buying a new car with it, and paying back the loan via monthly check. Instead, you will pay your loan back with cash money bi-weekly at the dealership, which means you have to drive down, up, or over twice a month in order to not get your car towed.
Seem a little mean? Well, it’s not. But, more on that later. What’s important to realize is this one stop shopping experience creates a stress-free car buying experience. Instead of dealing with a bank as a middle man for a loan, everything is done through the dealership. The only “person” you answer to is the dealership. That stress-free atmosphere it creates has to count for something, right?
You Can Always get a Car
This might not be a lesser-known benefit, but it’s one that’s surely overlooked. Instead of frantically scrambling around trying to find different places to get a car loan from if you have bad credit, you can rest assured knowing that you will always be able to get a car from a buy here, pay here dealership.
Why is this overlooked? Because of what I stated earlier: these places are willing to take on a perceived risk (you and your bad credit) that banks, credit unions, or even some other used car dealerships aren’t willing to consider. They do this because they are there to help you. Buy here, pay here dealerships are your saving grace if you can’t secure financing through someone else. They are your last resort, but shouldn’t be treated like one.
After all, just because they are more equipped to take on bad credit customers, doesn’t mean they are risk-free. You could still default on your loan and try and take off with the car and sell it (don’t laugh, it’s been attempted multiple times before) which would cause them to lose money.
Offers a More Rigid Way to Pay Back a Car Loan
A way for these dealerships to mitigate this risk is by having you pay your loan back bi-weekly and in cash. That way, they don’t run the risk of seeing a check bounce, or a money-order fall through. While this might seem annoying for you, it’s actually beneficial for both you and the buy here, pay here dealership.
It’s a lot easier to not send a check and pretend like nothing is wrong, than it is to not physically hand cash to the dealership on the expected date. This more rigid way to pay back a car loan is what protects both you and the dealership from losing out. They can more easily keep track of who is and isn’t paying their loans back on time, and you are much less likely to default on a loan or miss a payment. For you in particular, it might be a nuisance. You might have bad credit because of a previous bankruptcy, and you might be exceptional at paying things on time. But, for the person who procrastinates or has a hard time keeping track of when it’s time to make a payment? This system could be a life-saver for them.
Combine the difficulty of avoiding or forgetting about making a cash payment with the understandable no-tolerance-for-BS attitude that buy here, pay here dealerships have — and you have yourself a winning combination to get someone back on track.
Promotes Financial Responsibility and Growth
This more rigid payment system not only helps prevent a bad credit consumer from defaulting on their loan or missing a payment, but also promotes financial responsibility. If you are making a payment twice a month on a car loan for a couple of years, that type of financial habit won’t dissipate into thin air. That means you’ll be able to successfully make on-time payments without the guidance of such a rigid system. Paying once monthly for that new car with a check will feel like a breeze compared to paying cash twice a month, and you will have the confidence that you are able to now handle paying bills on time.
Even if late or missed payments aren’t an issue for you, getting a car and making these payments on time is still a great way to help your credit score. After all, you are still making payments on a loan, which boosts your credit score. Eventually, that means you’ll be able to refinance for a lower interest rate and pay it off quicker, then get a better or newer car for an even more favorable rate.
With all of these benefits dragged out and into the sunlight from behind the cloud of an underserving bad reputation that surrounds these dealerships, it’s time that buy here, pay here dealerships start being viewed for their benefits — because they are a far cry from what they used to be, and are there to help now.