Can You Buy a Car with Bad Credit at a Lot that Offers a Pay-Now Option?

It is possible that you were denied a vehicle at an ordinary car dealership if your credit rating was low. It may be that you think you need to purchase a car from a buy-here-pay here lot if your credit is bad.

You don’t have to.

Here are some reasons you might not WANT use a “buy here pay here” dealership…

Dealers of this type offer financing on their vehicles. They also buy low-mileage cars from car auctions or they have a feature that makes a car dealership not want to sell it.

There are many reasons why a car is not worth buying. It could be because it’s had a negative mechanical history. Or, in other cases, the car is what car industry professionals call a “water vehicle”. The cars are those that have been salvaged after floods, then cleaned and sold through auctions. The reason a car winds up on a “buy here, pay here” lot is usually not that the vehicle has been in excellent condition and/or a perfect record.

They then wash the vehicles and sell them at prices that are higher than what they could be sold for by a car dealership. These dealers can sell junk cars at high prices because most people buying them are in serious financial trouble. The key here is desperation – these dealers prey on those who are desperate to secure financing.

On top of the already-high price, the dealers require a deposit that is typically a large portion of the amount the dealer spent on the vehicle. That’s all there is to it.

A credit card company would blush if they charged interest rates that high. Get a card with a rate that is lower than the car loan you would get from a dealer who offers buy here, pay here. Do you doubt it? You can call up and ask a few times.

The car is worth more than its book value. It is possible that the car has a history that would make it unsuitable. The car is overpriced and you’ll end up owing thousands on it. Get GAP coverage to pay off your debts if you do decide to go this route.

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