Some car lots advertise with the generic slogan of "we finance anyone". Are these car lots that provide guaranteed car loans for people with bad credit, worth looking at? Is this a viable option for you if you have a low credit rating? Let's take a quick look into the world of buy here pay here financing.
Buy here pay here financing is similar to putting a vehicle on layaway until it's paid for. The difference is that you are able to drive the vehicle and pay interest on the balance. It's not a real car loan and there's not a real loan company involved.
Being that there isn't a real loan company involved, you can really lose your shirt with the down payments that these places want for cars. What's worse, is that you usually end up paying for a down payment, what you could buy a car on the street for that is a similar make and model with comparable mileage.
There's really nothing worse than having given over your hard earned cash for a down payment, driving away only to realize later that you've been had. The money for the down payment is lost, you owe more on the vehicle than it's worth, so it's pay the payments or not. Not paying the payments is a definite loss, so it's a catch 22 situation.
If you have credit problems, you'll do much better to check out lending services that provide financing for bad credit. You may have been turned down locally at regular car dealerships. There are companies though, that can approve you for a real car loan, when others can't.
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