Finding a Used Car Dealership That Finances on the Lot
Buying a new car is never easy, even if it is not your first time doing it. It requires research, savings, and loads of paperwork. A lot of that paperwork includes finding the right type of financing for your next car. Traditional loans and lines of credit for large purchases involve a trip to the bank, a meeting with a financial advisor, and more importantly -- an inquiry into your credit history. Credit history inquiries are invasive procedures that involve sending queries to the three main credit institutions in the United States. Each inquiry that shows up on your credit report lowers your credit score a little bit. Fico asserts that each credit inquiry should take no more than five points from your credit score, something that in the long term will not likely impact your score.
The problem with this is that if your credit score is already low to begin with, you might not be offered financing through your chosen financial institution. If you reach out to other banking or financial institutions, they will also run credit inquiries. As a result, too many credit inquiries can make a severe impact on a person’s credit score. Therefore, other steps must be taken to secure funding on a large purchase like a car. For people who have past credit issues, or for people who need a car quickly, the problem of financing through banks and other financial institutions can be avoided by finding a used car dealership that finances on the lot.
More About Buy Here Pay Here Lots
A used car lot that offers in-house financing is referred to as a buy here pay here car lot. The name came from the ability to browse the selection of vehicles available at the lot, work with the dealer on finding a car that fits within your budget and personal preference, and working with the dealer on financing the vehicle all in one sitting. Many potential buyers can visit a buy here pay here car dealership and drive away with a car in the same day. For this reason, many people who need a car quickly go to buy here pay here car lots over traditional dealerships or third-party sales. But the perks of this type of car lot are not limited to convenience.
Purchasing a car when you have credit issues can be extremely difficult. Many people with credit issues wait to buy the car until they have enough saved up for a new car -- something that can take months in worst cases. If they can secure a loan through a bank, the interest rates are usually relatively high, which can put a financial strain on the car buyer. At buy here pay here lots, it is not necessary that the car buyer has a perfect credit history. Therefore, it might be in the best interest for a variety of different potential car buyers to purchase a car from a buy here pay here lot.
How to Find a Good Buy Here Pay Here Car Dealership
So, you’ve decided that you need to find a car dealership that finances on the lot. Buy here pay here dealerships are relatively easy to find, as they often advertise their financing options conspicuously to draw in potential car buyers. Sometimes, these offers seem too good to be true, and the rule of thumb when it comes to finding the right buy here pay here dealership is that if it sounds too good to be true, then chances are likely that it probably is. Here are some things to look for in a trustworthy buy here pay here car dealership.
- Look for a dealership that is easy to communicate with. Good communication comes in many shapes and forms, from a friendly greeting when you get on the lot to an easy-to-read and user-friendly website. If you reach a car dealership and they seem more interested in making a sale than working with you on finding the best car options for all your needs, then you should look the other way. Communication is key to trust, and you want to trust the person who sells you your next car.
- Look for a dealership that has a good car selection. It’s true with any used car lot that the chances they will have the exact make, model, and color of car you are looking for are slim. However, the car lot should still have many vehicles to choose from, and they shouldn’t all be old. Be sure to check out the buyer’s slip before taking an interest in any car, and if a car salesperson isn’t willing to explain any questions you might have about the car, then you should be suspicious.
- Look for a dealership that asks for a down payment. As frustrating as it might seem to make a down payment on a car and then have to make further payments on it as soon as next month, you actually want to work with a buy here pay here car dealership that asks for a down payment. Down payments are a way to spend less on a car throughout the payment period, so if a used car dealer wants you to make a down payment, it means that they care about your long-term financial health.
- Look for a dealership that offers warranties. A warranty is really a dealer’s way of saying that they put faith in their car stock. Without that faith, you could be out quite a lot of money right after you bought your car if something should happen to it. A warranty means that the dealership has taken the time to look over the car, fix the things that were wrong with it, and offer it to you in a condition that they believe is worthy of purchase.
If you live in Gladstone, Kansas City, Parkville, or Liberty and are looking for a used car dealership that finances on the lot, head over to Auto Bank of Kansas City. With multiple locations in the greater Kansas City metro area, as well as hundreds of satisfied customers, we offer the best rates on used cars and in-house financing in the city. For more information, or to schedule a showing at one of our locations, visit our website.