“Must-Ask Questions”that you need to know before you go to a “Buy Here, Pay Here” Dealership

When it comes to buying a new or used car, the top most concern is the payment. The most common options are paying cash, leasing, or gettinga loan to finance parts of the purchasingamountof the vehicle. It depends majorly on the credit score and credit history of the buyer that what option he can opt suitably. Another option is to visit a “buy here pay here” (BHPH) dealership.

A BHPH dealership is a reasonable alternative when you are unable to get a loan because you have aninsufficient credit or zero credit at all. You can easily be lent money by a BHPH provider to buy a vehicle without involving traditional channels of payments.

If your credit is not good, considering a BHPH dealership will be advantageous to you to easily own a car or vehicle in a less time. But make sure you are updated with a few things before you actually go and make a deal with a BHPH dealer.

Ask these questions to BHPH dealership before finalizing a deal

1. What Docs I need to bring when I visit your dealership?

You may avoid delays in the process of buying the vehicle if you know in advance what docs are necessary as a part of the deal. Bringing right documents during very first visit makes the processeasier both for the dealer and buyer. Though the list of essential docs may vary depending on the specific dealer and customer’s unique credit situation, yet we surveyed the BHPH dealers to receive suggestions on some common and important papers one should be up to date with while visiting a BHPH dealership.

• Driving license
• Automobile insurance
• Residential Proof (phone bill or utility bill such as gas, water, etc )
• All the References (including complete contact information)
• Proof ofcurrent employment
• Down payment amount
2. What Payment Methods do you accept?

You may get the flexibility of a variety of payment options available with BHPH dealerships. While you can make monthly installments to a traditional lender, you can also make payment weekly or biweekly to a BHPH provider. Ask what payment methods they allow to send payments like many providers want buyers to bring cash to them and several others facilitate to do it via online or phone banking. And, if you currently have a bank checking account, credit card or saving account, some dealers will make it an automatic withdrawal requisite. Also, there are dealers who are good to go with payments via money orders. So, always make sure what payment options a dealer has and choose the best fit for you.

3. Where are you located?

It is vital to think about the location where you live as the dealerships prefer those buyers who are located near them. It helps them to maintain financial agreement. It is facilitating for buyers as well as they can conveniently visit the dealership for making cash payments. Hence, it would be simple and easy to choose a dealership located near your house.

4. What does it take for you to provide goodVehicles?

Bad or poor credit is never a reason that a dealership should give for not providing you with a quality vehicle. Instead, most BHPH dealerships are extremely concerned to offer a reliable vehicle in order to receive regular payments from the customers. A dealership should be happily ready when asked to explain the standards of inspectionor processesrelated to reconditioningthat are used to prepare vehicle for purchase.Learn if they offer services for maintenance & repairs on site or they have tied up with partner provider for that.

5. What is Your Late-Payment Policy?

Even if you don’t intend to delay a payment on a car loan, it may happen sometimes under a tight budget. Learn if the late-payment scenario is really critical with your BHPH dealership or if it is flexible with a grace period. Although it is less likely that a delayed payment will trouble you much but it is always good to know any potential risks beforehand. Imagine the late-payment policy of the dealer provoking him to take away the car without any questions asked!

You should also ask if the dealership regularly reports both negative and positive credit information with credit-reporting agencies. If so, you can have a chance to make or rebuild a positive credit history if you think you will be making good payments.