Getting finance for buying cars is not at all any easy affair these days. Banks and financial institutions undertake a lot many formalities before finally approving a loan. But the doors are closed for those who have got a bad credit history and they are left helpless with no other source of getting a loan. So, they cannot get an auto loan easily if there are plans to buy a new or a used car as banks usually blacklist a customer who has been a loan defaulter.
So, the other best option is approaching a buy here pay here car dealership where people can seek respite. These particular dealers provide financing there itself and the person buying the used car can pay back in installments. So, they do not have any tie-up with any bank or financial institution. Before taking the decision of going for an auto financing option from used car dealers the following things need to be considered.
1.Firstly, you need to be clear if this is the best option for you. Maybe you can borrow money from friends and relatives and then pay them back as per your convenience. If you have got real bad credit history then buy here pay here car dealership will definitely be the best option for you. Before going for it you need to check if the dealer has got a good reputation in the market.
2.Before taking the decision you should at least speak to their customers who have taken the financing option from the dealers. This way you can know about their experiences in dealing with the company and if they had any difficulties or problems.
3.You might have turned up here as banks are not sanctioning loans due to your previous records. A reality check has to be done so as to see if you would be able to timely repay the money to the dealer as per the conditions laid down otherwise you might land up in trouble. There has to be a regular source of income which is good enough to survive even if a certain portion goes into repaying the loans.
4.Used car dealers also charge interests as normal banks and financial institutions do. So you should do the required planning and see if you can easily clear off the interest amount over and above the loan.
5.Some of the buy here pay here car dealerships give a scope for negotiations in terms of the price of the car and also the interest charged on loans. You should try to negotiate a bit because a small discount means you need to payback less which is a big relief.
Such things should be considered when opting for a financing facility from the used car dealers.