Buying a car is a very big decision to make. So, before purchasing a car, there are some things you have to consider, such as finances or payment plans. Although there is a certain way that Buy Here Pay Here dealers function, there are also some very common misconceptions about them as well. Busting these myths will help you see the advantages of a dealership like Drive Casa has to offer! Continue reading to learn 5 misconceptions about Buy Here Pay Here dealerships!
1. BHPH dealerships are not regulated
Many people think Buy Here Pay Here is an unregulated industry. However, BHPH dealers can only operate with significant laws and regulations binded to them. The regulations that BHPH dealers have to deal with are both on the federal and state level. This is very similar to traditional dealerships. BHPH dealers actually help you by protecting you on several aspects; they ensure operational ethics and quality of a consumer’s purchase, amongst many others.
2. BHPH charge sky high interest rates
Finance and lending generally institutes higher interest rates to those with bad credit. The BHPH industry isn’t the only industry that does this. Think of it like the bank; however, unlike banks, BHPH dealers do not charge sky high interest rates. Some believe that they will be charged 30 percent APR or higher by BHPH dealers. Contrary to this belief, most BHPH dealers usually only charge 10 or 20 percent APR. Of course this number depends on factors, but it focuses primarily on the purchaser’s financial ability.
3. Banks do not charge late fees but BHPH lots do
Although many people think that BHPH lots or dealers will impose additional charges as well as repossessions for late payments, this is actually very far from the truth. While some BHPH dealerships do implement rules similar to this, it is not entirely true for all BHPH dealers. In fact, BHPH dealers do charge late fees, but they are significantly smaller compared to other lending companies. In this case, the bank.
4. There is no guaranteed warranty
Many people think that Buy Here Pay Here vehicles do not have warranties. This makes potential buyers afraid to purchase cars at BHPH dealerships since they will not have protection. However, at Drive Casa, we do offer free oil changes as well as offer as a warranty on all of our vehicles!
5. Inventory shortages and issues causes repossession
The goal of many Buy Here Pay Here dealerships is to help each customer reach the end of their loan and get everything paid off. Furthermore, here at Drive Casa, we understand that working with a customer is more important than getting vehicles repossessed as quickly as possible. Although repossession does happen, it doesn’t happen to every deal made. It is actually the last option the dealer has to make and is usually done due to multiple failed payments. Many believe that their cars get repossessed because BHPH dealerships do not have a lot of cars in their inventory. However, as discussed, it is not the case.
As you can see, Buy Here Pay Here dealerships like Drive Casa are respectable establishments. Our main mission at Drive Casa is to help those in the community that don’t have the best credit (or any credit at all) find a vehicle that fits their lifestyle needs. For more information, please visit our website today!
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