Is Buy Here, Pay Here a Good Idea?

Hands Holding Car and Money

What is buy here, pay here financing? When you choose this unique type of auto financing, your dealership acts as both lender and seller. That means you won’t need to involve a financial institution like a bank or credit union in your auto financing process at all. So is buy here, pay here a good idea for Mesa drivers? If you’re trying to purchase a vehicle with a low credit score, this form of financing can have many benefits. Learn more about the pros and cons in the guide below from the Cactus Jack's Auto finance center.

What Are the Benefits of Buy Here, Pay Here? 

So, are buy here, pay here car lots good for the majority of Surprise car-buyers? There are many advantages, but the right solution for you will depend on your financial situation. Consider the following benefits:

  • Quick Turnaround – When you finance directly through your dealership, you can get a loan without waiting for approval for a lender. Instead, the dealer will automatically approve your loan if you meet their requirements. 
  • Flexible Loan Terms – Financing in-house affords you more control over your loan terms than you’d have with a bank. That’s all the more true if your credit score needs work.
  • Competitive Interest Rates – Typically, you can get similar interest rates with buy here, pay here financing as you would from conventional lenders. Still, it’s important to shop around and make sure you’re getting the best available rates.
  • Flexible Down Payment – Buy here, pay here financing can be a solid choice if you need a car now, but don’t have money saved up for a down payment. In fact, some in-house financing dealerships don’t require down payments at all or are flexible about the amount.

What to Know About Buy Here, Pay Here Car Lots

When are buy here, pay here car lots a bad choice? Like any form of financing, this payment structure isn’t right for everyone. Here are a few possible drawbacks to keep in mind:


  • Credit Bureau Reporting – Hoping to raise your credit score by making timely auto loan payments? Make sure that your dealership reports to the major credit bureaus, because not all do.
  • Vehicle Tracking – Some dealerships install a tracking device, so that the vehicle can be repossessed in the event that a borrower cannot make payments.


Explore Your Auto Finance Options at Cactus Jack's Auto 

So is buy here, pay here a good idea for your next vehicle purchase in Glendale? The takeaway here is that there are lots of advantages to financing directly with your dealership, especially if you’ve struggled with your credit score. Still, there’s no one-size-fits-all solution for auto financing. For more finance and insurance info, don’t hesitate to give us a call at %%di_phone_number%%. We’re happy to sit down with you to find a financing solution that fits your needs and budget!

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