Buy Here Pay Here Financing – Cincinnati, OH
When looking to get a car from a buy here, pay here dealership, it’s important to understand the ins and outs. Buy here, pay here (BHPH for short) dealerships are already bewildering enough to a lot of consumers. Add on the wrongfully bad reputation that modern BHPH dealerships still have to deal with, and you have a recipe based in fear and confusion. Obviously, this doesn’t make finding a car for credit-challenged customers any easier, which is why dealerships like McCluskey Automotive — who have buy here, pay here financing — are here to rise above the smog of doubt that has settled over the BHPH industry. We’re here to provide some clarity when it comes to getting a vehicle from a buy here, pay here dealership. That way, the consumer won’t be confused or afraid when it comes time to head over to one.
But first, it’s important to check if you even need to go to a buy here, pay here dealership. After all, it is supposed to be for those who have no other options — so it’s important to exhaust all your other options first.
First, Confirm Whether You Need Buy Here, Pay Here Financing
The first thing you should do is figure out your credit score, and take a look at your credit report. Everyone is eligible for one free credit report a year, so take advantage of that with whatever website you choose to use — there are a lot — and start investigating. If your credit score is on the lower end, don’t worry because it might not be as bad as you think. In order to get a better understanding of why your credit score is so low, take a look at the report. Identify any black marks or other issues so you can understand what happened. If there are any you can dispute or take care of, call and try and get them removed or paid off (if you have the extra money). That will bump your score up a bit.
After that, start asking around. Head over to a new or used dealership and see if they’ll finance you. If they won’t, talk to a bank or credit union. Not a member of a credit union? Become one that day, then ask what they can do about financing a car for you. If that doesn’t work out, then you will need to resort to buy here, pay here financing.
But, it’s important to exhaust your options first. Simply because buy here, pay here financing involves higher-than-average interest rates (for good reason) that you could easily avoid if your score is good enough.
What is a Buy Here, Pay Here Dealership?
Thanks to horror stories and a bad reputation that has dragged it’s way into 2016 — but should have disappeared many years ago — what buy here, pay here dealerships like McCluskey Automotive actually do is misunderstood by many consumers. Buy here, pay here dealerships exist to provide those who can’t find a car anywhere else – essentially any consumer that has abysmal credit – with a vehicle. Therefore, things work a little differently when compared to a conventional dealership.
BHPH dealerships do everything in house. Everything from financing, selling, and accepting your payments. A brief rundown on the process is as follows. Consumer goes to a BHPH dealership looking for a car, a financial consultant gets the consumers credit score (or cross references the one you brought in, which is good to do), allots an amount they will lend you, works out your monthly payments and interest rate, then shows you a few different cars you can choose from.
When compared to a conventional dealership, it’s clear the process is reversed. Because you have bad credit, the dealership will figure out what you can afford and then present you with a few different options, as opposed to a new car dealership where you pick the car you want first, then work out the payment after, provided you are financially fit. The cars are all used, and typically won’t have any of the modern conveniences or entertainment features found — since that costs extra money. But, all that matters is if the car works properly.
And this is one of the biggest worries that consumers have when shopping at a BHPH dealership. Thanks to the horror stories people still tell from when BHPH dealerships first opened, and before more rules and regulations were set in place and enforced, consumers still think that buy here, pay here dealerships are home to sleazy salesman with cheap tricks that ultimately result in repossession.
Grasping Buy Here, Pay Here Financing
That’s why it’s important to fully grasp the financial process at a buy here, pay here dealership. Starting with those sky-high interest rates that are there to seemingly take advantage of a consumers vulnerable position. Honest and reputable buy here, pay here dealerships, like McCluskey Automotive, explains why this assumption is wrong. The real reason for higher interest rates is protection for the dealership, in case we need to repossess a vehicle because the consumer didn’t keep up with payments. The cost of that repossession is slightly mitigated by the money that came in from the interest rate. It’s simple, really — we are taking a risk taking on financially unstable customers. The interest rate isn’t nearly as high as it’s rumored either.
The payment process is different as well, and also gets slandered for no reason. In reality, the in-person payment process also exists to protect the dealership. Bi-monthly payments are made at buy here, pay here dealerships, and the customer is required to make their payments physically in cash. That way, untrustworthy customers won’t try and put through failed money orders or checks they know will bounce.
At the end of it all, the overall process is actually beneficial for the car buyer for multiple reasons. First and foremost, consumers who had no hope and no car are now able to get on the road and get back to work. Second, making physical payments with cash will help the consumer build good financial habits, allowing them to later manage their credit better. Third, buy here, pay here dealerships report your payment progress to the credit bureaus, which means your credit score will improve if you make payments on time.
That’s a basic understanding of buy here, pay here financing, and the benefits it can provide to the consumer when done right.
McCluskey Automotive: We Know Buy Here, Pay Here
At McCluskey Automotive, we know the ins and outs of buy here, pay here dealerships and everything they have to offer. When we first opened our doors, we didn’t want to be just another used car dealer — we wanted to be a better kind of used car dealer, which is why we accept credit-challenged customers, and offer them a stress-free and safe environment to get financing, and get back on the road. One of the benefits of providing buy here, pay here financing is that since the customers come to the dealership regularly to make payments, we are able to build trust. This allows us the opportunity to better help our bad credit customers even further, since we will see them all the time, and help make them feel more comfortable throughout the duration of their loan.
Why do we do all this? Because other than providing trustworthy and reliable used cars to all our consumers, the best way to be a better kind of used car dealership is by putting the needs of our customers first — and constantly striving to find new and better ways to help them.
Visit McCluskey Automotive for Buy Here Pay Here in Cincinnati. We are located at 8525 Reading Rd, Cincinnati, Ohio 45215