Common Myths About Buy Here Pay Here Dealerships
When it comes to car buying, there’s a lot of misinformation. It is especially true for buy here, pay here lot dealership. Many people think that these dealerships are only for people with bad credit or no credit. However, this isn’t always the case. Many buy here, pay here dealerships offer competitive financing options and quality vehicles.
So, if you’re in the market for a new car, check out your local buy here pay here lot near me. You may be surprised at what you find. This article will show some common myths about these dealerships and explain the truth behind them!
Myth 1: At a BHPH lot, the borrower/buyer would be responsible for more than 30% of interest.
There are still dealers who charge the maximum rate allowed in their state, although they are a minority. Various data sources list the average interest rate for BHPH dealers at somewhere between 19% and 22% APR.
When you compare this to the average interest rate for all Deep Subprime (FICA score below 549) loans at 17.9% and Subprime (FICO scores of 550–619) at 14.4%, it appears quite reasonable. Because BHPH dealers finance their businesses with their own money, 20 percent looks manageable.
Myth 2: There may be no guarantee of breakdowns or expensive repairs.
OK, these claims are valid. However, the warranties are uncommon, and when issues arise, the customer is left to solve them independently. It isn’t accurate at most BHPH dealerships today. Most reputable dealerships offer some warranty or protection plan with the sale of the vehicle.
Myth 3: Late payment might result in extra costs or repossession.
It is also true, although the implication is that BHPH dealers do it but not banks and finance companies. For nonpayment or default on a contract, any financial institution may add late fees, accelerate agreements, and repossess the collateral.
Myth 4: BHPH dealers are only interested in selling high-mileage used cars.
BHPH dealers often stock a wide variety of new and used vehicles, depending on the particular dealer’s business model and inventory. While some dealers may specialize in high-mileage cars, most will have a mix of cars and trucks.
Myth 5: Buying a car from a BHPH dealer is more complex and takes longer than buying from a traditional dealership.
Purchasing a car from a BHPH dealer can take longer, but it’s not necessarily more complex. Many dealerships are now using online tools to make the process easier. It’s essential to do your research and prepare before visiting a BHPH dealership.
Thank you for reading an article about common myths about buy here, pay here lot near me dealership. We hope this information was helpful and informative.
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