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It's a great thing to be able to walk into a new car dealership, take a test drive or two and decide to buy what you want. When credit isn't an issue and you have a good credit score, it's a great feeling to be able to just buy a car. For many people, this option is off the table. They've had problems paying their bills, maybe they've had to file for bankruptcy or in some cases lost a home. Getting to the point that you have bad credit is a result of the snowball effect that comes from being short on cash. First, you can't pay your bills on time, then when you need credit again, you have to pay more than you did before as interest rates are higher. For people in this situation, just walking into a new car dealership and "picking something out" it's possible. So when you find yourself in a situation of having credit problems as a result of money problems themselves, when should you make the decision to choose the buy here pay here option? It's a tough decision for people that have had good credit in the past, and it's not one to take lightly. So when? When you've exhausted all options. Anyone considering buy here pay here car lots to buy their next car should have a real hard look at any available options, first. Why? Interest rates are high at buy here pay here dealers. Not only are interest rates high, but the price of vehicles is usually higher, as well. In most cases, you can expect to pay near retail prices for vehicles that have higher mileage and less resale value. The vehicles typically offered at buy here pay here car lots are generally unattractive to new car franchise dealers that sell used cars. In some cases, they're vehicles that are rejected by other independent used car dealers. Usually, they're the low cost vehicles that are just outright, "odd balls". It's because of they're low market value that these vehicles end up on buy here pay here car lots. The buy here pay here dealer picks them up for less than their book value in most cases, and retails them out to people that don't have other finance options. Requiring a down payment lowers the risk for the dealer, and covers part of their cost of the vehicle. Weekly, biweekly or monthly payments to the buy here pay here dealer represent a hefty profit as interest charges on the "loan" also go directly to the dealer. So when you've exhausted the option of being able to get auto finance through a local credit union, local banker or other secondary lenders available through some new car dealerships or online, you should carefully consider some of your local buy here pay here dealers. In many towns around the country, there are friendly local buy here pay here's that offer to put people in reasonably priced vehicles without outrageous interest rates. In some towns, you simply can't find a good deal, at all. It's a decision to ponder carefully, and when you do decide to go the bhph route, make sure you know what you're getting into. Make sure the vehicles is carefully inspected by an independent mechanic and the payment terms are to your benefit, not just the dealers. For a list of local buy here pay here car lots in your area, be sure to visit http://buynpayhere.com.
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