Buy Here Pay Here Car Dealerships Are a Great Source for Used Cars in Kansas City
Buying a car is a major investment, and when you're in the market for a used car in Kansas City you certainly have many options. You can purchase on the private market, go to an auction, or use a used car dealership, for example.
One of the most popular options is purchasing from a buy here pay here dealership. In this article, we'll discuss what a buy here pay here dealership is as well as the pros and cons of choosing this type of used car dealership in Kansas City.
What are buy here pay here dealerships?
Auto Bank in Kansas City is a buy here pay here dealership. The most significant difference between other dealerships and buy here pay here dealerships is that the dealership takes care of the financing directly. Instead of dealing with a third-party bank or financing company, you will be making payments directly to the dealership.
This greatly simplifies the process of getting financing and making repayments for a used car for sale in Kansas.
Pros of buy here pay here dealerships
Buy here pay here dealerships offer an everything-under-one-roof approach to purchasing a used car. No longer do you need to worry about getting financing in one place and purchasing a car in another—you can do everything from financing to making your repayments all in one location.
Lower down payments
Buy here pay here dealerships often offer low down payments or for no money down. You can usually get financing and drive away in your vehicle with just a short visit to the dealership.
Bad credit accepted
Traditional dealerships will essentially turn away anyone with poor credit. Even if you have a provable regular income, the systems or third-party financial organizations they use judge borrowers based on an outdated credit scoring system.
Buy here pay here dealerships can set their own criteria on who to offer financing to. This means that anyone who has fallen through the cracks of the traditional system can use a buy here pay here dealership to get financing for a vehicle as long as they have some way to make the repayments. This also applies to those who are purchasing their first car and so don't already have a long credit history.
Cons of buy here pay here dealerships
Potentially higher interest rates
Buy here pay here dealerships can set their own interest rates, which can be higher or lower than other options on the market. If the dealership offers loans to those with bad credit or poor credit, they may decide to increase the interest rate to compensate for the risk.
But buy here pay here dealerships must still abide by local laws. States set a maximum allowable interest rate for such financial transactions, so the idea that a buy here pay here dealership can charge egregious interest rates is a false one.
In some cases, the interest rates you can get from a buy here pay here dealership will be better than the rates offered by a bank or more traditional lender. This is particularly the case if you have had bad credit in the past. In fact, most banks won't offer a loan at all if your credit rating is below a certain level.
Potential to overpay for a vehicle
Banks typically base potential loan amounts on the market value of a vehicle. You won't be able to get a loan for a vehicle that's being sold for much higher than its market value.
When you purchase from a buy here pay here dealership, it's up to you to research whether the vehicle you're buying is worth the amount it is being sold for.
Typically doesn't affect your credit score
If you get a loan from a bank, repaying the loan in a timely manner can help to improve your credit score. Buying a used car with a loan from a buy here pay here dealership won't necessarily improve your credit rating unless the dealership reports the loan repayment to the credit rating agencies.
Easy car financing in Kansas City
For those who value their time or have questionable credit, buying from a buy here pay here dealership has many more pros than cons. In Kansas City, Auto Bank is a top buy here pay here dealership choice. With two locations at East Front Street and East Truman Road, Auto Bank has over 150 vehicles for sale, all through a simple process. Browse the vehicle inventory now to find your next car.