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Too often Chris Kunitz Youth Jersey , those with bad credit think that the only way that they’re going to get approved for a car loan is if they use “in house” financing, such as is offered by buy here, pay here car dealerships. This simply isn’t the case and there are options available for those that are interested in getting a real car loan with better terms.
Dealers that offer “in house” financing, are generally smaller used car dealers that have older model Tyler Johnson Youth Jersey , high mileage cars for sale. You can’t possibly expect to be provided with a warranty as most all of these vehicles are sold as is. Would you like an extended warranty on a used car purchase? If so, you need a real car loan and a vehicle that is eligible for such a warranty. In order to qualify for an extended auto warranty on a used car, the vehicle generally needs to be 1 to 3 years old with moderate mileage for the respective year model. But, a lack of warranty is just the beginning when it comes to buy here Anton Stralman Youth Jersey , pay here types of car dealerships.
Interest Rates
The interest rates charged by dealers that finance their own cars can be astounding. They can even be higher than what many major credit card companies charge. Albeit you do have to pay a higher interest rate when you have bad credit, regardless of where you obtain your financing from. It’s simply unreasonable however, to expect someone that already has bad credit, to pay an interest rate that is counterproductive to their being able to repair their credit with payments that are affordable.
Down Payments
These types of car dealerships most always Mikhail Sergachev Youth Jersey , and I repeat ALWAYS want a down payment. Why? To reduce their risk of putting collateral out on the highways. They want to have as little invested in that vehicle as possible after your down payment. Most people that have credit issues don’t have three or four thousand dollars to put down for a down payment. Not having a substantial amount such as this, really limits your selection of vehicles with dealers that finance their cars in house.