Buy Here Pay Here consumers aren't necessarily in any worse credit situations than a Special Financing customer but instead have difficulty with the added verification required by bad credit loans. Buy Here Pay Here customers may have difficulty verifying income due to self-employment or a lack of income entirely. Since Special Financing lenders who accept no credit or bad credit customers require income verification and proof of ability to pay, consumers without the ability to meet minimum income or verification requirements could be left without a vehicle. This is where Buy Here Pay Here can be a benefit to consumers. Buy Here Pay Here loans are more lax with requirements due to the fact that it is the dealership itself that is funding the loan. The dealership is loaning the money, which is why you buy the vehicle and will make your payments at the dealership, hence the program name "Buy Here and Pay Here". If you are a consumer who has unverifiable income, problems with licensing, or are unemployed, Buy Here Pay Here may be your only option and it can be a Godsend to those who are just looking for a chance to rebuild their credit and get back on track.
There are negatives to Buy Here Pay Here or Rent to Own programs just like any other sub-prime lending programs since the company or dealership is assuming additional risk by loaning vehicles to customers that do not have a good payment history. You will likely have a higher interest rate or need more money down than a customer with good credit and payment history, but you will be able to get a vehicle.
Call your local dealership that offers the program. If you live in Pittsburgh or surrounding areas, come and check out Used Car World! We partner with multiple lending programs and also have the Buy Here Pay Here program. We have a huge inventory of cars and trucks and are ready to give you a second chance! Click "Apply Online" to submit a credit application and get an answer within 10 minutes!
-Used Car World