If you are someone in a tricky financial situation with a less than perfect credit score, buying a car can be a hassle. One option you have is purchasing a car through a Buy Here Pay Here dealership. Instead of using a bank loan to obtain a vehicle, you finance the purchase through the dealership directly. Depending on your circumstances, this can be a good way to make new wheels accessible if you find yourself in need of a car and you cannot obtain other sources of funding. So how does it all work?

In-House Financing

Buy Here Pay Here dealerships like Azteca Motors work by offering customers payment options through in-house financing. With this kind of financing, the dealership does not require any kind of credit check. Instead of looking at your credit history, these dealerships want to see proof you can pay for the car now. How do they calculate your ability to do so? When you finance a car through a Buy Here Pay Here agreement, you must supply the dealership with paycheck stubs, identification, proof of address and a down payment.

Why This Might Work For You

Buying a vehicle through a place with Buy Here Pay Here might be a good option if you find yourself in a tight spot with finances. It is important to keep the higher interest rates in mind, but if you do your research and the pros outweigh the cons, Buy Here Pay Here might be a solution you can benefit from. The process is usually simple, so if you need to get back on the road quickly, it may work well for you.

Why This Might Not Work For You

If you are unable to afford high interest rates or you are looking for a very specific vehicle, these kinds of dealerships may not be the best option. Additionally, they may not work so well if you are unable to come up with a sufficient down payment. Typically, the bigger down your payment is, the better your loan conditions are. This is true regardless of the kind of financing you decide to go through. Buy Here Pay Here financing often requires a sizable down payment because of the higher risk involved in the lending model.

When you find yourself in financial trouble, sometimes car lots that offer Buy Here Pay Here financing can be a solution. Whether or not there are more benefits or cons will depend on your unique circumstances, but it is important think about what is available.