Purchasing buy here pay here used cars can be fraught with pitfalls. However, you can maximize your chances of success by paying attention to what matters most, to both yourself and BHPH used car dealers. If you are prepared and willing to do some background research before committing, the deal can be a win-win for both parties – you and the car dealer.
Payment Options On BHPH Used Cars
When it comes to buying buy here pay here used cars, it is important to understand what the installment payments and deadlines are when it comes to Usually, the downpayment is between $1,000 to $2,000. This is cash paid upfront to the BHPH dealership before they will let you drive off with the car. This is followed by weekly payments of $50 to $100. Sometimes, it is also paid biweekly (every 2 weeks). The installment payments are very important as failure to make them on time makes you susceptible to have the car repossessed.
Most buy here pay here used car dealerships expect the buyer to come back and make cash payments on their installments. Lately, a lot of dealers are also willing to accept payments via the telephone or online. These are made using debit cards, bank drafts and automated checking account withdrawals.
The locations of where the buy here pay here car lots are need to be factored in for convenience of making payments within the deadline. If the car lot insists on cash payments delivered by hand, it would be best to buy it from a dealer that is in your town or within close driving distance to your place of work. You also need to note the car lot’s opening hours, and if they provide a drop-off box for payments outside of office hours.
Late Payment Policies
The payment deadlines are strictly enforced. On average, about 1 in 4 buy here pay here used cars sold end up in default, so buy here pay here used car dealers are well accustomed to and tough when dealing with people who do not strictly adhere to the payment schedules. Even being a day late can result in danger of a repossession. One person I know had his car repossessed after he was late for 4 days. That is why understanding what type of payment options and deadlines are vital. Some car dealers do offer a 30-day grace period, so be sure to check on this and know where you stand.
Reputation Of BHPH Dealer
Buy here pay here used car dealers in general do not have a good reputation. It is in the nature of their business to be rough and strict with customers. As much as you can help it, go with a dealer with a good reputation. Sometimes, this is difficult to tell, but you should try to do your best to determine if they are genuine in wanting to provide reliable used cars to their customers. In return, if you are someone who is honest and committed to making good your part of the bargain, you should expect nothing less than a dealer who is forthright and fair with you as well.
Check with the Better Business Bureau and find out what rating they have. Are there a lot of complaints about them? The longer they have been in business, the more reliable such data will be. You can also check with friends, co-workers or family members. Ask around to see if they can recommend any good BHPH dealerships.
The internet is a good information resource as well. Lately, federal and state agencies have been investigating into abuses by buy here pay here dealers. Avoid going through dealerships that are currently or have in the past been investigated, unless you can find other mitigating factors that lead you to believe they are OK to work with.
For more information, check out these tips on how to find good Buy Here Pay Here Car Dealerships.
Reliability Of Used Cars Provided
When you have limited cash or credit, every dollar counts. You want to make sure that the money you spend on a car allows you a good driving vehicle. Buy here pay here cars are older models, even clunker cars as some would call it, and bear high risks as to their ability to perform. Therefore, before buying a car, make sure to inquire with the used car dealer as to how much they have inspected the car to ascertain that it is in great condition for driving. These cars should also be well reconditioned before being handed over to you. If you can, have a good mechanic or a friends who knows a lot about cars check on the condition of the car before you take it over.
In addition, it is always a plus if the dealer is willing to offer some type of driving guarantee, say 6 months to a year, or a 5,000 – 10,000 miles warranty. A man posted that he was even able to get a 2 year, 24000 mile warranty on a used truck, despite a bankruptcy on record. Some dealers have their own car repair facility so that if you ever have problems, it is more convenient to get the problem fixed.
Some BHPH car buyers may not be fully satisfied with the type of used cars that they qualify for. They want the option to trade-in their automobile for a better one. Many car dealerships will offer trade-ins to their customers, once they see that you are good and capable in making the weekly or bi-weekly payments. Since they deal with a lot of older cars that still drive well, BHPH dealers are usually open to trade-ins, as they know how to find new customers for these vehicles. This is a more hassle-free way to upgrade than trying to sell it on your own.
You can bring this up as a possibility and see what their policies are. Some will let you know that they are absolutely open to it, while others may indicate that they don’t usually allow for trade-ins. If you are someone who is already eyeing a better car, it may be easier to go with dealerships that big inventory that is open to trade-ins on buy here pay here used cars.