Everyone has seen it. Those signs in front of buy here pay here car lots that say, "we finance anyone". If you have credit problems, you may have thought about using one of these types of car lots to get financed. Is it real financing or is it just a bad deal? Let's look into buy here pay here and how it work for, and against you.
There is absolutely no benefit to your credit score by using a buy here pay here car lot. In fact, there's not even a real loan involved. Sure, you get to drive the car, but only after a substantial down payment is paid and you'll get the title once all the payments are paid directly to the dealer.
If you're thinking that you may be able to get a car at a buy here pay here car lot without any money upfront, you're thinking wrong. These types of car lots charge down payments and will work you for as much cash as they can get out of you.
The interest rates that these types of places charge are as bad as pawn shops. Worse than credit cards. Try 25% or higher. Most of your monthly car payment will go to paying interest on top of profit. Now you know the story behind those "we finance anyone" signs.
A better alternative that you can look into is online auto loans through reputable lending services that help people that have bad credit. There are good companies that can provide you with auto financing, based on your monthly income.
