You’ve probably heard that buy here pay here car dealerships can offer a solution to people who need a car but have bad credit. But how does that work?
Why will a buy here pay here Columbus, OH finance you for a new car, but a bank won’t?
What is a Buy Here Pay Here Dealership?
We’ve written a bit before about what buy here pay here Columbus, OH dealerships are, but let’s go over the basics.
At a buy here pay here dealership, you pick out your vehicle from the inventory–just like you would do at any other dealership. However, you ALSO get financed for your vehicle through the dealership.
This is different from traditional dealerships, where financing is done through third-party banks or other financial institutions, and this can directly impact your ability to get approved for a car loan–most of the time making it more difficult.
Okay, So What Is Bank Financing?
Bank financing is a method for financing where you actually go directly to a bank, credit union, or other financial institution and apply for a loan.
At first glance, this might seem like the simplest approach, but there are a few things you should be aware of before you walk into your local branch.
A bank is much less likely to approve your loan application if you have bad credit or no credit. And if you’re in a situation where you need a car but don’t have very good credit, you’ll probably find that you won’t get very far if you try to work with a bank.
Even if you can get approved for financing at a bank, you’ll want to visit multiple banks to ensure you’re getting the best deal on your loan. This might mean an extra hassle for you if you’re looking to get the best interest rate on your loan.
However, getting a low interest rate on a loan from a bank if you have bad credit or no credit is highly unlikely.
Is a Buy Here Pay Here Dealership the Right Choice?
If you find yourself in a situation in which you have a low credit score, a buy here pay here dealership is probably your best bet at getting approved for financing.
Buy here pay here loans might come with higher interest rates and more frequent payments, but they also put you in a position to improve your credit. So not only do buy here pay here car lots enable you to get the car you need at a price you can afford, but they also set you up for possibly getting better loan terms on future vehicles.
At J.D. Byrider in Columbus, we want you to succeed. We find satisfaction in knowing that we’ve helped many people with bad credit get back on track for a healthier financial future while helping them into the car they need so they can live their lives more easily.
We want the same things for you. Come visit us today to talk to one of our representatives about your options.