Live in Wichita? Visit a Buy Here Pay Here Car Lot Near You

August 27th, 2020 by

What Are the Advantages of Buy Here Pay Here Car Loans?

Buying a new or used car can be quite a hassle. That is particularly true if financing the vehicle is involved. One can easily get put in the position of having to arrange the communication and document trail between two very different organizations.

Needless to say, many difficulties can ensue. It doesn’t have to be that way with Buy Here Pay Here (BHPH) car loans. BHPH makes it “one-stop shopping” in that the loan and the vehicle are all in one place. That is, the loan is arranged at the dealership and one makes payments at the dealership where the vehicle was purchased. In short, the Wichita dealership is also the financing agent. This offers several advantages including convenience, faster transactions, assistance to those that are credit-challenged, and trade-in allowance.

Convenience and Ease of Transactions

As mentioned above, it is nice to have all of the partners involved in the transaction in one place. Gone are the trips and phone calls to financial institutions to arrange for a loan. As of late, the lines between a traditional dealership and those offering BHPH have become a bit blurred. When you’re looking for Buy Here Pay Here near me, many traditional new and used car dealerships are actually also BHPH dealerships. It may not be obvious at first with the words for BHPH spelled out in big banners or across the windshields of the vehicles. Many use other words and phrases. A common one is “We Finance,” which often amounts to the same thing as BHPH.

Regardless of how it is expressed, what it means to the consumer is convenience. It not only adds convenience but also speeds up the process significantly. Everyone is commonly located, knows each other, and can arrive at decisions quickly. Eliminating the distance and communication barriers equates to closing the deal in record time.

Car Loans for the Credit-Challenged

If one’s credit rating leaves a bit to be desired, BHPH dealers have a reputation for being more willing to make the loans that banks, car loan agencies, credit unions, and other traditional finance companies won’t. BHPH dealers have an incentive to both move their vehicle inventory and to secure interest-gathering loans in one transaction. This makes them more likely to want to move on loans than other financing organizations that have only one sales opportunity. In addition to getting the loan in the first place, it helps those with no credit or marginal credit get a good credit history. It is a win-win for both parties.

Buy Here Pay Here Financing Cost

Is Buy Here Pay Here financing more expensive than traditional financing? Buy Here Pay Here dealers in Wichita have become increasingly competitive over the decades to the point that the interest rate you’ll pay on a Buy Here Pay Here loan will be comparable to loans from the bank or alternative auto loan company.

The hard truth is that banks may advertise a low-interest rate but that rate is only for people with outstanding credit who also own collateral like their own property. When anyone else goes in to get a loan for a car, they’ll be met with higher interest rates. Banks have a convoluted application procedure so they’re hoping that by the time you’re approved for a loan you’ll be happy enough to take their offer and get on with your life!

Buy Here Pay Here dealerships in Wichita are much more upfront about their interest rates because you’ll be approved for a loan virtually immediately. You are free to do the math yourself and compare loans from as many providers as you like.

Another hidden cost of standard auto loans is the length of terms you’re tied down to. Banks tend to push you to take out a longer loan that you’ll pay back over many years. This can initially look good on paper as the monthly repayment will be low and they’ll even entice you with lower interest rates if you take out longer loans. But when you calculate how much you’ll be paying in interest over the course of many years, it’s clear why they do this – you’ll be paying a lot more in the long run.

Buy Here Pay Here loans, on the other hand, tend to be shorter in nature. You can get your car paid off quicker and then you’ll own it outright. From there, you could use it as collateral for a car title loan, use it as a trade-in for a better vehicle, or simply look after it and maintain it for decades to come.

Additional Incentives at the Dealership

Like with the incentive to sell inventory and to secure loans simultaneously, BHPH dealerships also are more inclined to take trade-ins that other dealerships will decline. Like with making loans, BHPH dealerships have a reputation to take older cars and “fixer-uppers” as a down payment on a new or used car. In the end, it helps the consumer to get that hard to find cash for a down payment.

Established Buy Here Pay Here dealerships like Auto Now in Wichita will give you a free warranty on any vehicle you buy. You are covered for major issues for up to two years or 24,000 miles. It’s a great way to get peace of mind when purchasing a used car in Kansas.

BHPH dealerships offer many advantages to the consumer in many ways. One can get in and out the door with a new or used vehicle in record time. No longer is there that dreaded mix of car haggling and financing that many have faced in the past. Using BHPH dealerships makes it more like a trip to the grocery store, and it makes much more sense than the old, outdated models used in the auto industry. Get in touch with the Auto Now dealership near you for more details.

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