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Reasons to Avoid “Buy Here, Pay Here” Car Dealers | Charlotte, NC

Reasons to Avoid “Buy Here, Pay Here” Car Dealers | Charlotte, NC

Reasons to Avoid “Buy Here, Pay Here” Car Dealers

If you’re looking for a good deal on a used car, you might be drawn in by the seemingly low payments offered by many “Buy Here, Pay Here” dealers. However, there are a lot of pitfalls to doing this. Here are five reasons why you should never buy from a “Buy Here, Pay Here” dealer.

  1. Unreliable Cars. The vehicles that wind up on these car lots have often been sold multiple times to different owners. As soon as they miss one payment, the cars are usually repossessed and sold again. This can lead to issues with the car’s history and maintenance.
  2. High Interest Rates. While they might lure you in with what seems like an affordable payment, you will probably end up with a ridiculous interest rate. BHPH loans may have rates around 20 percent or more. This means a huge amount of your money is going directly into their pockets — not towards paying off your car.
  3. Variable Rates. In addition to the high up-front rates, many of these loans come with variable rates that can change at any time. That means your payments, which were initially affordable, can skyrocket to unaffordable heights without warning.
  4. Lockdown Devices. Because of the high default rate many BHPH dealers experience, they frequently install lockdown or tracking devices in their vehicles. These are used to track down your car for repossession if you ever miss a payment. If they use a lockdown device, it can even prevent you from starting the engine.
  5. Credit Damage. If your interest rate goes up and you can’t afford your payments any longer, this will go on your credit report, causing further damage to your credit. While many people turn to BHPH dealers because of credit issues, these dealers could potentially make a bad situation even worse.

Learn more about your financing options at Larry Jay Mitsubishi.

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