Google the phrase “buy here pay here,” and chances are you’ll get a whole list of reasons not to purchase your vehicle from one of these establishments. From naysayers writing off the process as a way for car dealerships to make money to financial institutions, like banks, warning against people obtaining cars this way. What is wrong with this picture is that the institutions who write off buy here pay here establishments are often ones with the most to lose. By keeping potential customers loyal to the credit process, they establish security for their lending services. However, for the seeming protection that credit-based services do offer, they often forget that nearly 30% of Americans have bad credit. And of those thirty percent, a disproportionate amount live in southern states. That spells bad news for Raleigh, Durham, Chapel Hill, Butner, Creedmoor, Louisburg, Wake Forest, and Nashville areas when it comes to purchasing a new car.
The Disadvantage Of Bad Credit
What’s the disadvantage of bad credit? It means that potential car, house, and property buyers either pay higher interest rates or are denied loans outright. This takes a toll on mental health and the overall stability of the buyer’s market as well as making big purchases seem entirely out of the realm of hope for individual buyers.
Even for those with good credit, making purchases is a big hassle. It requires giving identifying information to a bank and waiting. While you’re waiting, products, land, cars, and the thing you are applying for has the opportunity of being bought out from underneath you. Regardless of the reason why the wait happens, it can be an exhausting, terrifying experience waiting for approval for your loans.
For all the downfalls portrayed by opponents to buy here pay here dealerships, there are many things to be said about the issues with credit-based buying. Car buying doesn’t have to be a complex, weeks-long process that drains some and ultimately leaves others without a car. Working with AutoMax on getting the right vehicle for you is easy, takes less time than traditional car buying, and helps out those with low to no credit.
You Have A Vision. We Help You Get There.
Most car buyers start with little more than a dream about what they need and want from a vehicle and go to a car dealership to make it happen. Traditional car salespeople work with that vision and try to get more from the buyer. Chances are if the buyer heads to a dealership the salesperson will lead them to the newest model of the car that their customer wants, talk to them about upgrades, and the customer will not only be saddled with a car that costs more than they expected but also will have to wait as updates are added.
After going through the lending process, having to wait longer for your dream car can put a damper on the new car buying process. At AutoMax, we help you find a vehicle in our extensive inventory that fits your description. Want an SUV with a sunroof but have a budget? We go through our inventory to offer you options. Even if we don’t have the options you are looking for, we go through our stock and make sure that there’s no other car in your budget and our inventory that you might be satisfied with.
Legal Requirements Ensure Clear Lending And Purchase
Used cars aren’t everyone’s cup of tea, and a lot of that has to do with how used car sales associates are portrayed in media. The myth of the “lemon” car is persistent and tied to over-zealous used car dealers. In reality, it’s much harder to get a lemon because of “lemon laws.” If there is anything wrong with a car, a car dealership must disclose those things before selling them to you. Additionally, if a car dealer does sell a “lemon,” they will land themselves in legal hot water and could stand to lose much more than they could make off a faulty car.
All reputable used car dealers, like AutoMax, help you understand the pros and cons of the cars you are looking at. With simple and easy to read buyers guides on each of our cars, you can learn about any current or previous issues yourself. From there, discuss those things with your car salesman. If they know what’s good for the life of the company, as do the car salespeople at AutoMax, they’ll start an open and honest discussion with you about what to expect from that car.
How Lending Without Credit Works
You’ve come to AutoMax, had the dealer help you find a car within your needs, but now you need a little extra money to help you purchase a vehicle. For most car buyers, this is a reality, and this is where traditionally buyers would go to a bank, run a credit check, and get preapproved for a loan for the amount they need. This requires potential buyers to have good credit, which is not a reality for over a third of Americans. At buy here pay here establishments, lenders help those with no credit or low credit scores by working out a payment option based on other factors. Usually, this involves buy here pay here lenders giving you a pre-approved amount and working on a short-term loan with you. Initially, this means paying more per month. However, this helps get you to your dream of car ownership that much more quickly.
This doesn’t mean that the only customers of buy here pay here dealerships are customers with poor credit, however. There are many more reasons to purchase a buy here pay here car, including:
- Shorter wait times to vehicle purchase
- Shorter loan repayment periods, which helps you own the vehicle outright much sooner
- Smaller sales tax fees because of the nature of buying a used car
- Assistance throughout the entire process, from finding a car that fits your needs and budget to applying for aid to servicing your vehicle after purchase
- Simple and secure payment options, including an online payment option for our customers
See how simple buying a great vehicle can be by purchasing your next quality used car with AutoMax of North Carolina. Visit one of our locations, or call our Henderson location at (252) 430-1006 or our Youngsville location at (919) 570-1107 to schedule your next viewing appointment.