In the greater Toronto area alone, you will see so many different types of car dealerships. As a result, you have become a little bit overwhelmed by all of the different choices available. There are traditional dealerships who accept mostly prime credit scores, subprime dealerships – like CanadaAutoApproval.ca – who accept people with bad credit, and buy here pay here dealers who don’t even do a credit check. When you are interested in buy here pay here used car dealerships, here is some important information that you definitely want to keep in mind.
What Buy Here Pay Here Dealerships Are
A major part of successfully taking out a car loan is to completely understand the place from which you are obtaining the loan. Buy here pay here used car dealerships are a little bit different than other places where you might purchase a vehicle in North York. For example, they don’t offer the convenience of online pre-approvals before you visit the dealer.
The major difference, however, between us and the local BHPH dealership is that these places generally do not perform credit checks, and therefore, the bad credit auto loans are not going to be based on your credit scores at all. This could seem like an advantage to those with poor credit, but chances are you will have higher interest rates for a short loan term, making your monthly or weekly payments very high.
Who These BHPH Dealers Benefit
When you drive past these lots, you may see a couple of cars that catch your eye. You may be wondering if you are a suitable candidate for buying a car at one of these dealers. Basically, the people who purchase cars from these places are:
- Individuals with poor credit history
- Individuals who have no credit history at all
If you fall into one of these categories, then these types of loans could potentially be good for you, but make sure to weigh all your options.
Ask Past Buy Here Pay Here Customers
Before you sign on the dotted line at the nearest dealership with in-house financing, talk to friends and family about their experiences at different locations. Perhaps you have a family member or friend who turned his or her life around with a car loan.
After being in an intense bad credit situation with credit card debt or otherwise low credit scores, this person was able to make a new future with the auto loan. By making the payments, this individual really brought his or her credit scores up, and the financial future was so much brighter. Realize that dealerships with on the lot financing usually do not report your payments to the dealership. As a result, you do not have the opportunity to improve your scores.
At Canada Auto Approval, we always report your on-time payments because we want to help you improve your credit while buying the car you need. Apply online today to get started!