Most everyone has seen some bad credit car dealerships that advertise, "We Finance Everyone". What is the deal with these "We Finance Everyone" car lots and is buy here pay here something that will benefit you? Alot of people think that these types of car dealers provide real auto financing.
They don't.
They simply agree to hold a lien on the vehicle until all payments are completed. While this may sound good, there's more to the story.
The reason that down payments are requested, always, by these types of car lots, is because it covers most of the cost of the car. You're not really making payments to pay for the car. You're making payments to pay the dealers profit.
Not a good deal, huh?
To add insult to injury, the profit that you end up paying in car payments has a hefty interest rate tacked on. This can be as much as 75% of your car payment, respectively. Paying that amount of interest is a major setback if you're looking to improve your financial situation.
In addition, the price of the vehicle is another major issue. As there are no real loan companies that are overseeing the "loan", the dealer can charge whatever price that he wants to. In many cases, buy here pay here dealers charge thousands of dollars more than the actual retail price of the car.
If you have really bad credit, the good news is that buy here pay here isn't the only option that you have. There are good alternatives with companies that can provide you with a good auto loan, based on your monthly income. Some good companies online can put you on the road with a good car loan, without breaking the bank. So keep your cash in your wallet and explore what's available to you with online auto loans for people with bad credit.
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