Buy Here Pay Here $500 down Canton,Ohio

It sounds tempting, doesn’t it? Just $500 and you’re driving away in a car. But ask yourself:

• Am I focusing too much on the down payment and not enough on the total cost?
• What am I trading for this low upfront cost?

Here’s How , Pay-Here Financing Really  Works

Buy-here, pay-here is quite different from the traditional car-buying process. Normally, when you buy a car, the dealership helps you secure a loan from a third-party lender. With buy-here, pay-here financing, the dealership acts as both the seller and the lender. They offer in-house financing, often without a credit check, which makes it an appealing option for those with low credit scores. However, this convenience comes at a price.

At first , this might seem like a  good option. If you’ve  ever been turned down by traditional lenders, the promise of “no credit, no problem” can be very enticing. But it’s important to understand the true cost and implications of this type of financing before making a decision.

Why Buy Here Pay Here Might Not Be Right For You

• High Costs: The 2018 National Independent Automobile Dealers Association (NIADA) study reveal that ,  Buy-here, pay-here loans can end up costing you thousands more than the car is worth due to high interest rates and fees.
• Old, Low-Value Cars: These dealerships often sell older, less reliable vehicles. The average cost for a car on a buy-here, pay-here lot is around $7,004, with an average down payment of $950.
• Limited Credit Building: Many buy-here, pay-here lenders don’t report your payment history to credit bureaus. Even if you make all your payments on time, your credit score might not improve.
• Tracking Devices: Some lenders may install tracking devices on the vehicles to ensure payment, which can feel intrusive