Countless Americans today rely on their cars for daily life, from commuting to work to running errands and ferrying kids around. But if you have bad credit, finding the right car for your needs can feel impossible. Fortunately, dealerships that offer buy here pay here (buy here pay here car lots in kinston nc) can provide you with the vehicle and credit you need to get back on track. However, if you’re considering this type of financing, there are a few things to keep in mind.
What is Buy Here Pay Here?
Typically, buy here pay here dealers are located in or near a used car lot and advertise phrases like “Bad Credit OK” or “We Finance.” These dealerships usually do not require any sort of pre-approval or credit check, as they often have their own financing and underwrite the loans themselves. In some cases, a dealer may perform a cursory credit check, but this is not guaranteed and depends on the dealer’s need to sell a car.
In addition, some buy here pay here dealers require all loan payments to be made in person with cash or a money order. This allows them to easily repossess the car if you default on your payment. Some dealers even install devices that track or disable the vehicle, making it difficult to start if you’re behind on your payments.
Another important thing to consider is whether or not BHPH financing will report your payment history to the major consumer credit bureaus. This can help you build your credit and improve your reputation as a borrower, which can make you less of a risk for future lenders. But many BHPH dealers do not report to the main credit bureaus, meaning you won’t reap these benefits.