Buy Here Pay Here Car Dealerships?? Anybody Ever Used One??

The interest is ridiculous, anywhere from 25-45 percent, and most are right around 38 percent. I have a friend that will be paying off a 2000 loan for 3 years, with a 200 a month payment!(so that would be about 7200 she will be paying for a 3000 dollar car-she put 1000 down on it) I tried so hard to talk her out of it but she would not listen and now she has regrets.
Plus there are usually no warranties on the cars, so you have to budget for that on top of your payment. If you do go to a BHPH, choose one that includes the autofax, and make the highest down payment you can manage. I just bought a car this summer at a BHPH, but I paid cash in full because it was a pretty decent car, and I have learned from my own previous experiences buying both at a big dealership and a BHPH that I will never take a note out on a car again:) I will always just buy within my means outright, or go without. (It took me 5 years to pay off a 20,000 loan with a big dealership-I forgot what the interest was, but it was probably around 6% and before that it took me 3 years to pay off a 1700 car at a BHPH at about 35% interest!)I hope you find what works for you, Good Luck!

I have never used one, but I know of people who have. The interest usually starts somewhere arround 18% and just goes way, way up. Most of these companies make very little on the sale of a car. They make their money off of financing.

Remember it's not the dealership that gives you a loan, it's the financing company or bank. If you credit is currently on the mend, it wouldn't hurt to do some financing shopping. Contact a local bank or credit union, explain you situation and see if you'll qualify; although don't expect to get the 5% advertised loan, you'll being paying a premium.

Some things to consider if this is the route you choose/need to take....
Research the company, have they been there a long time, see if there are any comments under their listing on yellowpages.com and check with the BBB.

Do NOT buy something you can't afford. If the payments are going to be $200 a month make sure you can afford that. Depending on how bad your credit is they may want weekly or biweekly payments. They will also be quick to reposess if you have late payments.

Put down a large down payment. Think of it this way. If you're not going to buy a car for 3 months and your estimating the payments to be $250, but that $250 away each month and when it's time to purchase you'll have a downpayment.

Good luck.

I would recommend DriveTime. We purchased our truck with them and it has been great. If you want more information let me know

Yes they get more money in interest, Yes it's highway robbery but if it's the only way you can get a dependable car then you have to bite the bullet and find a good car and go for it.

We have a dealer like this at the end of the street and have bought 2 cars there. It is so much easier to remember to drop off the payment since I pass it numerous times a day. Plus if anything goes wrong they are right there and their mechanic is pretty good..

My husband used one of these places a long time ago and they were really shady, but I'm sure there are some reputable ones out there. You might try looking them up on the BBB website. If I were you I would try a dealership anyway. I didn't think we could get financing from one but we did. They have a ton of banks that they go through. It's worth a try. Good luck!