Buy Here Pay Here Vs True Credit

Buy Here Pay Here also referred to as "Buy Here Pay Here Stay Here." We have all seen these places. You pay so much down and so much per week. You are usually buying a vehicle that is very low end and close to being used up before you get it.

Anatomy of A Buy Here Pay Here Sale

Let's look at a typical Buy Here Pay Here sale. Assuming the dealer pays $1500.00 for the car he would price it at least three times his cost which would be $4500.00. You would pay $1000.00 down and $50.00 per week. After 10 weeks he has broke even and for the balance of the contract his profit is $3000.00 less sales tax and plus any interest charges. If you miss a weekly payment the car is repossesed and the dealer can hold it for 20 days (in Alabama) and then sell it again for the same price. The same car can be sold many times by these kinds of dealerships.

This kind of dealer does not report to the credit bureau so after all these payments you are still left with no credit rating that will help you establish or re-establish your credit.

True Auto Loan

With our financing and guaranteed credit approval you will get a much better vehicle and it usually includes a warranty. Most importantly you will be reported to the credit bureau on a monthly basis. This will enable you to establish or re-establish your credit. You do not have to go to the Buy Here Pay Here Stay Here car lot. Remember your credit is valuable. There is no way to build a credit score dealing with Buy Here Pay Here.