By Jon Acuff, as written for the AutoTrader.com web site
That's why we created Buy
Here Pay Here Financing Basics and this list of questions you
might ask. Each one is designed to give you a starting point
in your conversation with a Buy Here Pay Here (BHPH) Dealer.
Pick the two that matter most, ask all five or add your own questions
to get the information you're interested in. Regardless of how
you use this list, we hope you'll feel confident and comfortable
when you visit a BHPH dealership.
Bringing the correct documents to a BHPH dealership can dramatically speed up your purchase process. Although the list of items can differ depending on your unique credit situation and each dealer, we interviewed BHPH dealers around the country and here is what they suggested you take:
* Driver's License
To find out exactly what to
bring, call the dealership before you visit. They'll help you
pull together everything you need.
Instead of making monthly
payments to a traditional lender, you make weekly or bi-weekly
payments at a BHPH dealership. Many BHPH dealers require you
to physically bring cash to their location, but some are expanding
the ways they'll accept payment. Ask if they take payment by
phone or online. Some dealers will require an automatic withdrawal
if you currently have a checking account, savings account or
credit card. Other dealers offer the option of paying through
money orders. Explore a variety of payment methods with your
dealer to find one that best fits your financial situation.
No one ever intends to make
a late payment on a car loan, but sometimes it happens. It's
critical to understand the dealership's late payment policy.
Will they repossess the car the day after you fail to make a
payment or is there a grace period? Will they contact you or
simply take the car back with no questions asked? More than likely,
this will never be an issue, but it's good to know what to expect
if an emergency temporarily delays your payment. You might also
ask if the dealership regularly reports both positive and negative
payment information to the credit reporting agencies. If you
have a good payment record and the dealer reports this information,
this can help you start or rebuild a credit history if that is
important to you.
If you're already at the dealership
then this question is an easy one to answer, but when selecting
from a list of BHPH establishments, location is important. Pick
one close to where you live or work so that it's convenient to
come in to make your payment. What's more, BHPH dealers prefer
to work with customers who live close to the dealership so that
it's simple to geographically maintain the financial agreement.
Thus, finding a dealership nearby may make it even easier to
get the car loan you need.
Bad credit shouldn't prevent you from getting a good vehicle. In fact, many BHPH dealers are extremely focused on offering reliable vehicles. They understand that to ensure your faithfulness to the payment plan, they need to offer you a dependable vehicle. Ask dealerships about the inspection standards or reconditioning processes they use to prepare vehicles for purchase. See if they offer maintenance and repairs onsite, or if they have a partner provider that does. A reliable vehicle serves the interests of both parties, and a dealer should be happy to provide you with this information.
Whether it's your first time
or your tenth time at a BHPH dealership, it's important that
you know what to look for.