Understanding Buy Here Pay Here
Buy Here Pay Here is a great way to finance vehicles. It is not meant for customers who have good credit although it works for them as well. The aim is to have the dealers finance to their customers directly without any third-party lenders getting a say in closing the deals. The reason this is helpful, is that by eliminating the third-party banks, the dealerships make their own rules on who gets accepted and who does not. But since it is in the best interest of the dealerships to sell as many cars as possible, they make easier criteria for financial approval.
The main issue that gets solved, comes with the fact that they do not need to run credit score checks. By eliminating the need for high credit scores, the dealers can approve so many people that banks would normally decline. However, since they take a huge risk with customers that have been known to pay late, they aim to secure themselves by asking for proof of income documents. This way, if customers have horrible credit scores but great incomes, then they get approved to buy directly from the dealers. The range of cars allowed would be guided by the amount of income that the customers can prove.
How Do The Dealers Decide On The Down Payment Amount?
While many used cars Buy Here Pay Here Raleigh NCdealers advertise “zero-down offers” or “$500 Down,” customers need to keep in mind that this could have some limitations. For example, most states require that customers pay all the taxes, as well as registration costs, upfront. This would mean that customers have to have some money available regardless of the amount of down payment they are planning. In addition, if customers are approved for certain loan amounts but choose vehicles that are far beyond those loan limits, then they need to, at least, come up with the difference as down payments. However, if the customers choose vehicles that are much lower than their approved credit limits, then this issue is not present.
What Kind Of Cars Are Available At The Used Cars Buy Here Pay Here Raleigh NC Dealerships?
Used cars Buy Here Pay Here Raleigh NCdealerships have all kinds of used vehicles. The way they get cars varies but there are three main ways. One way is through customers trading in their vehicles. These vehicles would be fixed and cleaned and resold for a profit. The second possible way is by buying them from rental companies that need to update their rental fleet so they need to frequently sell their used vehicles to dealerships. These vehicles are often in good shape and need very little work done on them. The third possible way is through auctions. Auctions can be from average people auctioning their vehicles or from the government selling vehicles they seized from unpaid taxes, or from banks seizing vehicles for repossession. Hence, the vehicles vary in quality and types greatly. Each vehicle is inspected for possible repair needs and a price is determined. Customers can often ask the dealerships of where they got the vehicle or they can run a Carfax report and get some history that way.
How Do Customers Get Approved?
Used cars Buy Here Pay Here Raleigh NC dealerships have approved so many drivers. With online applications available to everyone, customers are able to fill out their information from their home computer or sometimes even smart cell phones. The customers’ information is quickly processed and the dealership(s)
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Buy Here Pay Here
Buy Here Pay Here