Should You Avoid "Buy Here, Pay Here" Financing?
When exploring options for your next pre-owned vehicle, you will have to decide between standard auto financing vs. "buy here, pay here" payment plans. Perhaps your research on used car dealers in the local area has already led you to some of these types of businesses. Right Price Auto does not offer in-house financing - for a good reason. Keep reading for our honest assessment of why we believe that "buy here, pay here" financing can hurt you - and your credit score - in the long run.
Right Price Financing vs. "Buy Here, Pay Here"
Purchasing a car can feel overwhelming for even the most experienced buyer. It's no wonder that so many customers choose to finance their cars through "buy here, pay here" dealerships. Taking the "in-house financing" route seems like an inexpensive and hassle-free solution, but is this shortcut beneficial in the long run?
Right Price Auto believes that it is not. We know there is a better way to finance affordably because we have mastered it. Through years of experience and building solid relationships with lenders, our dealership is uniquely positioned to finesse the system in your favor. We take a holistic and flexible approach, conversing with our customers and listening well - and then finding that perfect loan that aligns with their needs.
If the "Right Price Auto Method" sounds too good to be true, we'll let you in on our secret: We have a true passion for finding auto financing tailored to each and every customer's circumstances. It's what we do best and what we're known for.
Pros and Cons of "Buy Here, Pay Here"
When weighing your options between traditional financing vs. "buy here, pay here" payment structures, it's essential to look past the "here and now." Yes, it is a significant relief to have the chance to secure immediate financing, but these "buy here, pay here" arrangements tend to have exorbitantly high interest rates and a harsher hit to your credit score if you fail to meet a payment deadline or default on a loan.
If you ask our Right Price Auto team, the risk is higher than the reward. Of course, there are a couple of benefits, too, which we highlight here:
Pros:
- Streamlined buying experience
- Flexible repayment options
- Approval more likely
Cons:
- Unusually high interest rate
- Higher risk of hurting credit score
One of the strengths of Right Price Auto is the time and attention we give you when you visit us. Direct, honest conversations are our dealership's bread and butter; we like to look you in the eye when we present you with the best financing options we have gathered based on sitting down and hearing you out.
Does "Buy, Here Pay Here" Help Your Credit?
It depends on the dealership you choose. Some businesses don't report these transactions to credit bureaus, meaning your score won't be affected negatively or positively. The high interest rates are a much bigger hindrance to keeping up with payments down the line, which has the potential to bring your score down. Regular auto financing, on the other hand, tends to offer more standard interest rates, giving you a good opportunity to build your credit up when paying off your car loan.
Right Price Auto encourages our customers to think about their long-term finances; we will do our best to get you terms that you can manage in the near and far future.
Right Price Auto Financing Solutions
The bottom line is that Right Price Auto puts relationships and people over instant gratification and making sales. We appreciate that each customer who comes to chat with us has unique needs and requires tailored solutions. If you still need convincing that we're right for you, take a look at our reviews! Customers flock to our business from near and far to take advantage of Right Price financing.
Our customer-driven dealership is best experienced in person, where a member of our sales team will give you a grand tour of our used cars, trucks, and SUVs and help you find the one that aligns seamlessly with your lifestyle. Your satisfaction and confidence is our top priority. We will work hard behind the scenes to find not just the very best deal but also the one that makes the most sense for you and yours.
Frequently Asked Questions
Does in-house financing report your credit?
Car dealerships that offer in-house financing do not always report your credit directly to credit bureaus, but please keep in mind that some do. Choosing a "buy here, pay here" business might be tempting in the short term, but this setup also puts needless demands on you in the long run, with higher interest rates than you might find when purchasing a car through traditional auto financing.