Buy Here Pay Here Tips:

1. Know your credit score.

If you know what your credit rating is, you’ll know what to expect when you go to a Buy Here Pay Here dealer. Better yet, taking the time to review your credit rating will help you ensure that there are no errors in any of the credit reports.

2. Know your payment history.

As soon as you sit down to discuss a loan, the Buy Here Pay Here dealer is going to find out everything they need to know about your financial past to ensure your can afford the payments on the car you want to buy. Take the time to prepare yourself to talk about any issues that might arise including recently missed payments, past repossessions or bankruptcies.

3. Know your budget.

Carefully consider how much you want to spend on a car to determine the financing you will need. It’s important to think about the initial price as well as any additional costs. Knowing your budget will help the process move faster. Luckily, some Buy Here Pay Here dealerships offer warranties or vehicle protection plans which can aid in reducing any out of pocket expenses you may encounter in the future.

4. Know how long of a financing plan you need.

You don’t want to be paying off the car long after the warranty has expired, so most experts recommend carrying a car loan for a period of about 4 or 5 years.If you really want a low monthly payment you can often extend the term to 6 years.

5. Prepare for a down payment.

Even if you are discussing a financing plan with a Buy Here Pay Here dealership, it’s important to have enough money to make a decently sized down payment on your new vehicle. Preferably, you should start out with a 20% down payment in order to greatly reduce the size of your loan and the size of your monthly payment. Although 20% is not set in stone at all dealerships, a down payment of some amount is usually needed in order to finance your new vehicle.

6. No-haggle dealers = no hidden costs

At many auto dealerships, the prices listed don’t actually show the final price that you will end up paying. If you choose to work with a no-haggle Buy Here Pay Here dealer, you won’t have to worry about additional costs that will increase the size of your monthly payment and loan through your finance plan.