Estimate your payments

Please adjust the options below so we can estimate the most accurate monthly payments.

Your estimated credit score
Loan term
Down payment
$4,000
$0
✓ 0 selected
→ Compare Vehicles
Clear All

Is a Used Car Dealership Different From a Buy Here Pay Here Car Lot?

Explore These Two Kinds of Used Car Lots In Kansas City

When you're in the market for a pre-owned vehicle, you'll likely encounter two main types of sellers: traditional used car dealerships and buy here pay here car lots.

While both offer used vehicles, there are some key differences in how they operate and what they can offer you as a buyer. Let's consider the distinctions and similarities between these two types of used car lots in Kansas City.

The Traditional Used Car Dealership Model

A used car dealership typically operates on a conventional business model. These dealerships often have a diverse range of vehicles, from economy cars to luxury rides. They may source their inventory from trade-ins, auctions, and other dealerships. 

Financing options at these traditional dealerships usually involve working with multiple lenders, including banks and credit unions. This can sometimes result in more competitive interest rates for buyers with good credit.

Used Car

Reputable dealerships often provide detailed vehicle history reports and may offer certified pre-owned vehicles that have undergone thorough inspections.

While credit checks are standard, traditional dealerships can have some flexibility in working with various credit scores. Some buyers may prefer to qualify for a loan from their personal bank before shopping; traditional used car dealerships allow this approach.

The Buy Here Pay Here Car Lot Approach

Buy here pay here lots operate slightly differently, catering to a specific segment of car buyers. The defining feature of these used car lots is that they provide financing directly to the buyer, with no need to apply for loans with multiple lenders before finding one that will approve the application. This can be advantageous for those with challenging credit situations. 

Buy here pay here lots may have a more focused inventory, often featuring reliable, affordable vehicles suited for buyers on a budget.

While credit checks may occur, buy here pay here lots are more willing to work with buyers who have less-than-perfect credit histories and prefer to offer loans based on ability to repay. Buyers make payments directly to the used car dealership, on a weekly or twice-monthly basis. For some buyers, this payment schedule can help with budgeting.

Similarities Between Types Of Used Car Dealerships

Despite their differences, these two types of car lots share some common ground. Both offer pre-owned vehicles, giving buyers the opportunity to find reliable transportation at a lower cost than new cars. Reputable dealers of both types will perform safety and mechanical inspections on their vehicles before selling them.

Customer service is a priority for both traditional dealerships and buy here pay here lots, as they aim to help buyers find a vehicle that meets their needs and budget. Additionally, at both types of lots, there's sometimes room for negotiation on price and terms.

Making the Right Choice For Your Situation

Deciding between used car dealerships in Kansas City depends on your individual circumstances. If you have good credit, a traditional dealership might offer better rates. For those with credit challenges, a buy here pay here lot could be more accommodating. Traditional dealerships may require larger down payments, while buy here pay here lots might be more flexible.

If you're looking for a specific make or model, a traditional dealership might have a wider selection. Buy here pay here lots often offer more frequent payment schedules, which some buyers find helpful for budgeting.

Regardless of which type of lot you choose, check reviews and ratings before shopping. Request a vehicle history report for any car you're serious about. Have an independent mechanic inspect the vehicle before purchase. Most importantly, understand all terms of the sale and financing agreement before signing.

The Auto Bank Difference

At Auto Bank, we combine the best aspects of both traditional used car dealerships and buy here pay here lots. As a leading used car dealership in Kansas City, we offer a unique approach to car buying: a focus on helping YOU.

Our inventory includes a big selection of quality used vehicles, carefully selected to meet a wide range of needs and budgets. Whether you're looking for a reliable family car, a fuel-efficient commuter, or something more special, we have options.

Because every customer's financial situation is unique, we offer in-house financing. This allows us to work with buyers across the credit spectrum, including those who might face challenges getting loans from banks.

To get behind the wheel of a new-to-you vehicle at one of our used car dealerships near you, start by getting pre-approved online for an in-house car loan. Then, visit one of our two locations and drive off in as little as one hour.

Find us in Kansas City: