If you’re in the market for a new car but have less-than-perfect credit, a “Buy Here Pay Here Miami” dealership may seem tempting. These dealerships offer financing directly through the dealership rather than through a traditional lender. In addition, they often advertise that they can help customers with bad credit get approved for a loan. However, it’s essential to consider the pros and cons of these dealerships before deciding.
One of the main advantages of buy here pays here dealerships is that they can help you get approved for a loan when other lenders won’t. For example, if you have a bankruptcy or other negative marks on your credit history, you may need help getting approved for a traditional car loan. In these cases, a buy here pays here dealership may be able to offer you a loan, albeit with a higher interest rate.
However, there are several drawbacks to consider about BHPH as well. For one, the interest rates at buy-here-pay-here dealerships are often much higher than those traditional lenders offer. This means you’ll pay more for your car in the long run, and it may be challenging to afford the monthly payments. Additionally, the vehicles at these dealerships are often more expensive than those at traditional dealerships, even after accounting for the higher interest rate.
Another thing to consider is the quality of the cars at buy-here-pay-here dealerships. Because these dealerships cater to customers with bad credit, they may not have as strict standards for the vehicles they sell. This means that you may end up with a car that has more problems or is in worse condition than the one you would find at a traditional dealership.
In conclusion, while buy here pays here dealerships can help you get approved for a car loan when traditional lenders won’t; they come with several drawbacks. The high-interest rates and lower quality of the cars may make them a less attractive option in the long run.