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Established Contributor
CreditDrama85
Posts: 1,044
Registered: ‎07-03-2007
0

Buy here , pay here Auto dealers?

what is the downside of this as opposed to conventional auto financing? it seems a little shady to me but i dont know why. has anyone every purchased this way? how does it work exactly?
Frequent Contributor
shyboy
Posts: 378
Registered: ‎08-01-2007
0

Re: Buy here , pay here Auto dealers?

[ Edited ]
Well there interest rates are hike up up up up. They might pull CRA a lot of times from different banks and company's to try to get you approve.

Message Edited by shyboy on 04-27-2008 08:44 PM
-------------------------------------------------------------------------------------------------Getting back in the credit game after major setbacks
Established Member
exploder3211
Posts: 45
Registered: ‎11-21-2007
0

Re: Buy here , pay here Auto dealers?

Most are very shady and cars cost 3x's the price...But i know one where i live and we deal with his on lot financing all the time... Its a decent rate given my credit (18% for a 97 Model Vehicle, which beats any bank around) and for 18 months its $380 ($5900 financed and $800 down).... Ask around if you decide to do this, check out the book values of the car and what there terms are... I doubt most dealers will be as fair as who we deal with..Then again he also has a repair shop that does good work and we are good customers
Established Contributor
CreditDrama85
Posts: 1,044
Registered: ‎07-03-2007
0

Re: Buy here , pay here Auto dealers?

is there a cap on the amount that dealers will allow u to do this type of financing on. i dont see any vehicles i like below $15k
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chartley3
Posts: 488
Registered: ‎05-23-2007
0

Re: Buy here , pay here Auto dealers?

One thing to remember about Buy Here Pay Here places is they dont have to report to the CRA's unless of course you miss a payment or get repoed. If you are looking to go this route find out if they do report and which CRA's they report too. If they dont, go elsewhere.
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granny031350
Posts: 951
Registered: ‎12-04-2007
0

Re: Buy here , pay here Auto dealers?

I am currently involved in a buy here/pay here ordeal.  First, I have a 1999 Ford Taurus.  Had about 80,000 miles on it.  It has been a good car but it was in exchange for a saturn that had 2 engine blow ups within a month.  My daughter orginally started this with the saturn and I got involved with the engines.  I pitched a fit.  They were taking her to the cleaners.  Her payments were every 2 weeks and they put a box in the car that shuts it off if you don't make your payment on time.  So after the saturn the owner gave us the Taurus in exchange but he rolled the negative equity into it and the payment went way up.  daughter couldn't do it so I took it over.  I pay almost 200.00 every 2 weeks for 65 payments or 30 months.  Then I find out that it cost 900 to get the title in your name AFTER you have paid them 3 times what the car is worth.  Supposedly they said any repairs 50/50 but that was bogus.  I can't wait to be out from under this but with so much neg equity can't trade in.  Still owe about 3600 plus the 900 to be done.  STAY AWAY
Established Member
exploder3211
Posts: 45
Registered: ‎11-21-2007
0

Re: Buy here , pay here Auto dealers?

I forgot about that
 
Alot of the buy here/pay here dealers will stick those boxes in your car if you miss a payment... And they are big stinkers to repo quick... And those boxes can cause massive mechinacal issues
 
That Taurus is a $3,600 car in total.... If it where me, i'd find out if they repo do they report to the CRA and if not then i say let em have it...
 
The big thing is that there charging the max intrest of 29% allowed by law... If your going to pay that GO FIND a secondary lendor who will finance anyone (call around to new car dealers and ask, a few i can think of on the top of my head are Nicholas Finacial, Reginal Finance, Progessive Finance, North State Acceptence, Ameri Credit) and find something like a Kia Rio/Spectra/Optima, Hyundai Accent/Elantra/Sonata or the like thats about 3 years old tops, and has no more than 60K... And is around $7,500... Finance it for 36 months and VOLIA! Usualy a 1K-2K down payment is required, but if you make payments on time, you will quickly rebuild your credit..
 
 

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