Three Main Clients of Buy Here Pay Here

Buy here pay here is a term associated with a sector of the used car industry. It aims to serve the portion of the local community that seeks dependable transportation, but cannot afford it by average means. The potential client can have a multitude of backgrounds, but the main hurdle they cannot overcome at a new or standard used car dealership is their credit score and their income. This is when the three main types of clients and their histories come into play.

First, they are single. Young persons have no established discernible credit so their scores aren't high enough to be approved for a loan on his/her own. They are usually just starting out and don't have anyone dependable to co-sign for them.

Second, they are single parents who have leveraged every bit of credit they could to support their child or children and, in the process, have damaged their credit. So, in order to get to and from work, afford daycare or medical visits, he or she has to work several miles away from home and needs transportation to make it.

Third, they are parents of ill children with low income. They need reliable transportation for medical support, treatments, and specialized educational care. This family didn't necessarily misuse their credit, they just have more debt than credit because of their bills and having low income. Or, they only have one income with multiple children, which doesn't qualify them for regular loan terms that are based on one's reliability to be able to pay. Buy here pay here auto loans are for drivers with difficult financial situations who still agree to the conditions of repaying a loan.

All of the individuals and families who sign in to buy here pay here agreements are made familiar with each of the terms. Under these circumstances, it is important for the families to make sure that their desperation for transportation alleviation should never overshadow the binding financial agreement they are signing. They had to work hard to sacrifice for the down payment and they will have to work hard each month to cover hundreds of dollars in principle loan payments and nearly, if not over, 30% in interest each month for the life of the loan. The typical lender would tell the young person starting out to go and build his credit and come back in a couple of years. Or, they'd tell the families to pay down some debt to improve their credit score, maybe get a co-signer, and try again. Buy here pay here used auto loans are up to the client to make that investment into transportation right now. Only the client can determine that their employment is not reliable for consistent loan payments, their debt is already too high to add another bill, or that they truly want to take the time to improve their credit score. Buy here pay here used car dealerships will be around for quite some time to those who are ready, willing and able to accept the terms for the full life of the loan.