Car Buyers In PA: What Is Buy Here Pay Here Financing?
Whether you’re in the market for buying cars in Philadelphia, York, Pittsburgh, Harrisburg, Erie, Chambersburg, or any other city in Pennsylvania, you’ve likely come across a buy here pay here car dealership.
In essence, buy here pay here auto dealerships provide a solution for car buyers with bad or low credit, or that are in bankruptcy. In most buy here pay here dealers in PA, there is no credit check. That makes them an ideal option for someone who cannot seem to get financing for the used car, new car, truck, or SUV that they want to buy.
What are the advantages of BHPH?
- Financing and auto purchase is made at one place and time. That saves automotive buyers that need funding from needing to go to various different establishments to finalize the car buying process.
- It provides a solution for people with a challenged credit score that need to buy a car. In addition, it can actually help rebuild a good credit score if you pay on time and the dealership reports that to the Pennsylvania credit bureau in your county.
- Car buyers can trade in their old car (even if it’s not in great shape usually) as part of their down payment.
- There is usually a 6-month warranty issued, and sometimes longer options are available.
- There is a 48 hour period when you can return the car you picked out. If you come across a dealership that does not offer this option, then you should stay away. When you purchase a vehicle through a BHPH dealer, you can drive it and determine if it suits you for those 48 hours. Furthermore, there is no obligation to accept their offer during that period, so you can actually test it out on the road before committing to an agreement.
What are the disadvantages of BHPH?
- The interest rate on the loan that you receive is often quite high, depending on your credit score.
- There are limited options when it comes to the car models you can get. It is a different process, in contrast with the traditional dealership. First, they evaluate you and see how much money they can lend you. Afterward, you can pick a car, but it might not be the one you wanted.
- Often BHPH dealers do not accept online transactions. The best option is to find one near the place you live. Otherwise, you would have to go back every few weeks to pay what you owe in person. That is because people who have bad credit scores are generally bad with money, and they cannot trust them immediately.
- They always have some sort of a late payment policy. Usually, dealers install tracking devices on the cars, so that you cannot run away from your debt. In addition to that, some dealers even install ignition shutdown systems. That way, your car will automatically shut down if you are late with your payments. That is an important thing to consider if you might not be able to pay what you owe regularly.
- There might be some hidden fees you were not aware of. You have to read the paperwork thoroughly. Sometimes there are administration fees and delivery fees. Moreover, some less reputable dealers may use your ignorance about what you are getting into. They might give you one price in person, and another one on paper.
Are you the right candidate for BHPH dealerships?
Even though it might be tempting to go straight to a BHPH dealer, you should first research all your options.
These types of dealerships are for people with bad credit scores. However, you should apply for your financing in a bank first or a local credit union. We’ve included references to some below for your convenience.
Local Credit Unions In Pennsylvania
Philadelphia Federal Credit Union
1206 Chestnut St, Philadelphia, PA 19107
York Educational Federal Credit Union
1601 S Queen St, York, PA 17403
Greater Pittsburgh Federal Credit Union
4415 Fifth Ave, Pittsburgh, PA 15213
Just because you had a few financial problems before, it does not mean that they will automatically reject your application.
However, if everything fails, a BHPH dealership is the place where you can find a decent car without breaking your budget.
You are the right candidate if you have had a few ups and downs in the past. BHPH dealers want to help their customers and provide them with the best deals. However, the contracts have to be fair to their company as well, and that’s why there is a high-interest rate.
Still, if you feel that you might not be able to make the payments, then it might be a good idea to wait it out. Try to improve your credit score, or find a BHPH dealership that has an excellent late payment policy. That way, you can have some ease of mind while driving. Furthermore, you would not have to worry that your car might stop at any given moment in the middle of the road.
Once your financing is all set, we implore you to try CarMarshal’s online car buying service. Simply search for your dream ride, and click “Negotiate,” so we can haggle with the car dealership to get you a sweet deal.