One of the most obvious drawbacks is that the interest rates are often higher than at other auto loan companies. This makes making payments much more difficult. However, if you make payments on time, you may have the opportunity to improve your credit score. However, making a payment late may actually hurt your credit more than it helps.
Can I get a loan if my credit score is 300?
Buying a car using a good buy here pay here near me loan may be a smart idea for some people with bad credit. However, there are some drawbacks to this kind of financing that borrowers should consider.
Another major drawback is that borrowers may be charged more for the vehicle than it is worth. Some dealers even try to sell you GAP insurance as a condition of the loan.
In addition to higher interest rates, you may be required to pay weekly payments rather than monthly payments. While this may sound convenient, it may limit the amount of money you can spend each week.
You may also need to make a substantial down payment in order to qualify for a buy here pay here loan. However, there are some buy here pay here car lots that require only a small down payment.
In order to save money, make sure to shop around for the best deals. You may be able to find a car dealer that offers a pre-approved loan, which will allow you to compare interest rates. You can also consider shopping for an in-house loan, which will allow you to choose from a wider selection of vehicles.