Buy Here, Pay Here Financing vs. Traditional Dealer Financing

Human beings make mistakes. In fact, having a standard or traditional one-size-fits-all approach is counter to culture, individuality, and life itself. We applaud people with great credit while sometimes not providing adequate services and opportunities to people who have had a credit hiccup along the way, or maybe who have a low score simply because they haven’t had the opportunity to even build credit. Should this prevent someone purchasing a car they could use for work, or to drive family around? We don’t think so. At AutoMax, we’ve been in the business since 1989 and understand that life happens. We understand that traditional financing isn’t for everyone because everyone is not the same.

Our buy here, pay here program is set up to offer the benefits of car buying to customers who have experienced financial hardships and are trying to get back on track. Having our own in-house financing, we’re able to offer a peace of mind that a third party loan provider cannot. That comes through learning about who you are, what your car buying needs are, and navigating your financial needs. But in order to understand the financing portion of car buying, we need to understand traditional financing and the benefits of buy here, pay here financing.

 

Traditional Financing

What goes into buying a new or used vehicle? Well, it depends on who you ask because it’s different for everyone. And the difference can often be determined by things beyond our control or by issues in the past that we’d rather keep in the past as we move forward. Buying a vehicle through traditional financing is the route to go if you don’t have prior issues with your credit and have had an opportunity to build your credit or have a cosigner. As a buyer looking for a used vehicle in North Carolina, here are a few options for the traditional financing route.

  • Dealership - Many first-time vehicle buyers go with the dealership for financing because they will often compete with third-party lenders and banks to get you the best rate. It’s convenient because it’s often same-day financing in the same place. However, unlike buy here, pay here dealerships, some dealerships still work with third-party lenders for financing, involving more cooks to the kitchen, so to speak, complicating the process.
  • Banks, credit unions and online - If you have good credit, financing through a bank, a credit union or even online can be the best option, especially if you finance through your personal bank or credit union. However, this assumes an uncomplicated financial history and good credit score.
  • Manufacturers - Typically this is done through a dealership to take advantage of special financing offers. These are generally only available to customers with excellent credit scores.
buy here pay here dealership

Buy Here, Pay Here Financing

What traditional lenders favor is low risk as well as higher credit scores. And those credit scores will often determine the size of your loan and interest rate on that loan. What that means is you could be paying more than the next customer on the exact same vehicle simply based on your credit score. As a buy here, pay here lot, the majority of our customers have lower credit scores and/or are dealing with some form of prior financial hardship. Let’s look at some reasons why buy here, pay here may be your best option:

  • Best suited for used-car buyers who may have low or bad credit as well as first time car buyers who are looking to establish credit and may not have a co-signer or qualify for a traditional third-party loan.
  • Everything is done in-house. The same team of experts at AutoMax work with you from the moment you step on one of our lots in Henderson or Youngsville, North Carolina until the moment you submit your final payment paying off your loan.
  • Would-be car buyers who are having trouble getting a loan elsewhere.
  • Perfect for customers who have a hiccup on their credit score and bad credit due to past financial hardships
  • Customers looking to not only purchase a vehicle, but to also have an opportunity to build their credit and the chance to improve their credit score to set up for financial success in the future.
  • Because there’s risk in every transaction, AutoMax used-cars go through a rigorous inspection and we focus on having quality vehicles with quality service.
  • Life can be difficult, and made more difficult, without access to a vehicle or reliable transportation. In fact, having bad credit or low credit can feel like a downward cycle, especially without having a vehicle to get you to and from work, or as simple as trips to the grocery store. Our team at the AutoMax of Henderson and the AutoMax of Youngsville want to provide our customers the keys to break that cycle and rise out above what should be a temporary setback.
  • Buy here, pay here used-vehicle dealerships may be your only option to get back on financial track. Fortunately the team at AutoMax is ready to greet you and assist you in your next vehicle purchase however we can.
  • We’ve seen it all at AutoMax and we’re sensitive to everyone’s needs. Because of this, our buy here, pay here dealership tends to be more forgiving when dealing with trade-ins and older model cars. Because we deal in used cars in the Raleigh-Durham, North Carolina region, we see vehicles and their values differently than a dealer singularly focused on new car sales.

With all the information that’s out there online these days, sometimes it’s best to go ‘old school’ and meet with a professional face-to-face. Our team is always ready to talk and help you find the best vehicle for your needs at the best affordable price for your wallet. Our locations in Henderson, North Carolina and Youngsville, North Carolina are ready to help when you’re ready to swing in and say ‘hello.’