How Do Buy Here Pay Here Car Lots Compare to Traditional Auto Loans?

If you're interested in buying a car, but have bad credit, you may have found yourself considering any one of a number of local buy here pay here car lots. These small dealerships that offer to finance cars with no credit check, can be a viable option for those that have no other option available. There are better ways to get a real auto loan without having to resort to using a dealer that finances their own cars, although many people are not aware that they have a choice.

A buy here pay here car lot typically has an inventory of older vehicles. Sometimes, they carry newer vehicles that are undesirable models, or high mileage newer cars. Rarely will you ever find a used car at one of these types of car lots that has any factory warranty remaining.

Down payments are usually required by dealers that offer in house finance. That's an industry standard. Because the dealer wants to minimize their risk of loss, they usually require a down payment equal to a certain percentage of what they actually paid for the car. Some dealers actually want a down payment equaling what they paid for the vehicle!

Interest rates are usually very high at buy here pay here car lots. You can expect to pay upwards of 15% and in many cases over 20%. Not only do these dealers make hefty profits on the sale price of vehicles, they also make even larger profits on the finance charges. Buying a car with bad credit from a buy here pay here car lot is no doubt, the most expensive way of buying a car.

Traditional loans don't have these issues...

The down payment is an initial investment in the sale price, not just dealer profit. Interest rates are much more reasonable and you can usually expect better help if you ever have a problem making a payment. The problem is that most people that have credit problems don't realize that there are financing options available to them through select companies that specialize in helping people with bad credit car loans.

Should you find yourself in the predicament of needing a car loan but having bad credit, do your best to get a real car loan that will help you to rebuild your credit score with reasonable monthly payments based on what you can afford. There are companies that are willing to help and that can set you on the right track with a real auto loan, frequently with little to no money down.

You'll find helpful resources for buying a car with bad credit without having to resort to using buy here pay here car lots, at http://www.BuyingCarswithBadCredit.com/.

Getting Approved for Auto Loans After Chapter 13 Bankruptcy

Auto Loans after Chapter 13 bankruptcy can seem like a real challenge.

Have the courts dismissed or discharged your case?

If they have, then you're probably in a better position to get an auto loan than you were before you had the bankruptcy.

You've probably got less debt now, and aren't getting the collection calls and late notices anymore.

Really, you're in better shape now to buy a car even though you now have really bad credit.

The secret is in finding the right lender.

The difficulty in getting an auto loan after Chapter 13 Bankruptcy centers around the notion that due to the current bankruptcy laws, you are actually able to file again at any time.

There is no limit to the number of times that a Chapter 13 case can be filed, which makes traditional lenders, hesitant.

Here's why...

Under BK 13, a car loan owed is reduced to the current loan value of the car at the time the BK 13 is filed, which is a high risk for lenders.

There is financing available through select lenders online that you can use to get approved. You can find auto loans after Chapter 13 Bankruptcy discharge or dismissal by using an online lending service.

http://www.BuyingCarswithBadCredit.com is a good place to start and has recommended sources for auto loans if you've recently had a BK.

You can get auto loans for bad credit with no money down, depending on the car you choose.

Don't be discouraged...

You've made payments for a few years now to pay back your debts and get your financial situation repaired. The services listed above consider this and consider it to be a responsible decision and action that you have taken.

One thing to keep in mind is that you don't have to use buy here pay here car lots for auto financing. Even after a BK, there's still good companies that are willing to help you.

I hope that this page is of benefit to you.