Buying a car can be stressful and inconvenient. Car finance can be a challenge to obtain if you have bad credit or no credit at all. You may not qualify for financing with a traditional bank, or you may be required to make a high down payment to get approved.
What is affirm payment?
Buy here pay here nearby dealerships are auto dealerships that offer in-house financing. Typically, these dealerships cater to people with bad credit, and may have high interest rates and a limited number of vehicles.
The average interest rate on a buy here, pay here loan is around 20%, which is four to five times higher than the average interest rate on an auto loan from a traditional bank. These high rates can make it difficult to make payments on time.
Buy Here, Pay Here dealerships often sell cars that are in poor condition. They may charge higher interest rates than they should, and may require cash or checks. They may also require bi-weekly or weekly payments.
Some dealers report payments to the credit bureaus, but not all of them do. If you make payments on time, it may help your credit. However, if you are late on payments, your car may be repossessed. Some dealerships also try to sell you GAP insurance as a condition of your loan.
Another disadvantage of buying a car from a buy here, pay here dealer is that your vehicle may cost more than it is worth. If you need a car to improve your credit score, it may be worth the extra money you will have to pay.