Some dealers often finance “in-house” car loans for borrowers with no credit or bad credit. At dealerships that advertise “Buy Here Pay Here,” you may see signs with messages like “No credit, no problem!”
The interest rate on loans from these dealers can be much higher than loans from a bank, credit union, or other type of lender.
Another feature of this type of dealer is that your monthly payment is made to the dealer. Some dealers that offer the “Buy Here Pay Here” method, as well as lenders who lend to people with no credit or poor credit, put certain devices on vehicles so they can later repossess or deactivate the vehicle if you fail to make a purchase. payment.
When the dealer arranges financing, the dealer collects your information and sends it to one or more potential vehicle financiers. If the lender decides to finance your loan, the lender may authorize or quote a rate to the dealer to finance the credit, known as the “purchase rate.”
The interest rate you negotiate with the dealer may be higher than the “purchase rate” because the dealer may include an amount to pay yourself for handling the financing.
In general, dealers and lenders are not required to offer the best rates, and you can usually negotiate the rate they offer you. You can save money over the life of the loan by getting quotes from multiple lenders, comparing offers, and negotiating for the best interest rate.
Today we provide you with the following report so that you can take the best measures and economic decisions.
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