4 Myths About Used Car Lots that Finance You Shouldn’t Believe Anymore
Myths tend to hang around even when the facts around them have changed a long time ago. And as we continue to believe the myths, we miss out on real opportunities to grab better deals. One entity that has been subject to a host of myths is a buy here pay here car lot. People still believe the fictitious stories that float around used car lots that finance and stay away from taking the advantage of easy bad credit financing.
It is time that you identify these myths and break them using facts. Used car lots that finance have come a long way from what they used to be a few decades ago and the misconceptions that have stayed from then do not hold true anymore.
Myth 1: People go to a buy here pay here dealer as a last resort
Untrue! Initially, when buy here pay here dealers selling cars, especially used, were not that popular, buyers often relied on banks and credit unions to finance their vehicles because they were the major players. Now, BHPH dealers have grown in number. And a dealer like Family Auto of Spartanburg is big enough to function as a trusted private lender. At Family Auto, we get buyers for whom we were the first option. People with all ranges of credit scores come to us for our used car quality and the associated deals.
Myth 2: Bad credit financing is highly expensive
Bad credit financing is comparatively (not highly) expensive. When you compare directly with the financing deals of banks or credit unions, yes, the interest rates at BHPH used car lots that finance is higher. But banks and credit unions also do not finance bad credit score holders without a co-signer and that is where BHPH dealers always stay ahead. The interest rate is comparatively higher because of your added associated risk. However, you can always make the loan expense affordable by paying a high down payment, limiting your credit span to 3 years, and buying an economical used car.
Myth 3: Low quality used cars find their way to such dealerships
You could have still assumed this to be true when people used to hold on to their cars during the 1960s and 70s. But today, people change their vehicles in under 5 years even when the cars are manufactured to survive well over a decade. Buy here pay here used cars at reputed dealerships are no longer of questionable quality. In Family Auto only, we get most of our cars through our trade-in channel from owners like you and every vehicle in our lot carries impeccable underlying quality. Family Auto also gives you a comprehensive 2 years/36,000 miles warranty. Poor quality vehicles have no place in our lot.
Myth 4: They do not tell you about the hidden terms until after the sale
Used car lots that finance or not, unscrupulous dealers are present everywhere. But they do not define the business models of every dealer in the market. Again, at reputed dealerships, you will never find any hidden terms. The financing process follows a systematic approach where every step is backed by a logical reason. You get bad credit financing, no questions asked, but the amount of auto loan has to depend on your income to keep you away from bankruptcy. Similarly, paying a high down and taking a 36-month credit plan will ultimately benefit you but a trusted dealer will ever force these on you as means to approve your auto loan.
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