If you are thinking about purchasing a new or used car, you might have automatically thought about heading to one of the big new car dealerships in your area. However, there are a few reasons why you might not want to do this. Instead, consider going to a "buy here, pay here" lot, which is simply a car lot that offers on-the-lot financing.
These are a few reasons why this might be your best option:
1. You Don't Have to Worry About Your Credit Score
If you have bad credit, you are going to have a really hard time getting a car through a new car dealership. Even if you do get approved, you'll probably have to jump through hoops to do so, such as by getting a co-signer, coming up with a huge down payment and paying a really high interest rate.
You shouldn't have to worry about any of these things at a car dealership that offers its own financing; since the dealership has a legitimate financial interest in letting you get the car, these places are generally very relaxed when it comes to credit scores.
2. You Can Skip the Disadvantages of a New Car
Having a bright, shiny new car might seem like a great idea, but there are some downsides. You'll often pay a much higher purchase price, and your car will depreciate in value a lot. By buying from a buy here, pay here type of dealer, however, you will be able to purchase a nice used car for a fraction of the cost of a new one. This can help prevent you from paying a lot for something that is worth very little.
3. You Can Build a Good Name
Building good credit can take a long time. By paying your buy here, pay here dealer on time for your vehicle, however, you can establish a good name with the dealership much more quickly. This can give you an option if you need to purchase a car later on. Plus, many of these dealerships will act as a credit reference if you ask them to be, which can help you get approved for loans for other things.
As you can see, buying through a buy here, pay here car lot can be a smart decision. If you are thinking about going to a new car lot, consider these reasons why you might want to reconsider. To learn more, contact a company like Autobank of Kansas City with any questions you have.