If you have less-than-perfect credit and are in a position where you need to buy a car, you might want to consider shopping at a "buy here pay here" car dealership like Autobank of Kansas City. These dealerships do essentially what their name implies: allow you to purchase a vehicle without the need for any outside or third-party financing. Before you buy a car from a "buy here pay here" dealership, however, there are some questions you'll want to ask.
What Documentation is Needed?
Start by finding out what kind of documentation and paperwork you'll need to bring to the dealership in order to be approved for their financing (assuming you're not paying in cash). Some common forms of documentation that these dealerships ask buyers to bring include proof of identification (driver's license), proof of employment, a list of references, and a down payment on the car, if applicable.
Which Forms of Payment Are Accepted?
With many "buy here pay here" dealerships, customers purchase cars using dealership financing. This allows the buyer to make weekly, bi-weekly, or monthly payments on the balance of the car directly to the dealership. When it comes to making those payments, it's important to find out ahead of time what forms of payment are accepted. For example, some dealerships may accept credit card payments, whereas others may only accept money order or personal check.
What is the Policy on Late Payments?
Nobody ever plans on buying a car and then being unable to make a payment on time, but it happens. This is why it's a good idea to find out before you buy the car exactly what the dealership's policy is on late payments. Will you have any sort of grace period? What type of late fee, if any, will be assessed and at what point will the late fee be charged? By finding out their policies regarding late payments ahead of time, you can avoid accumulated penalties and fees down the road.
Will the Purchase Be Reported to a Credit Bureau?
The idea of a "buy here pay here" financing option is to help you rebuild your credit and get into a reliable car, so you'll want to make sure that the dealership is actually planning on reporting your payments to the major credit bureaus. Otherwise, you're not going to see any increase in your credit score when you make timely payments and ultimately pay off your dealership loan.