Buy Here Pay Here Louisville

That said, if you’re not finding the solution you’re looking for in Louisville we’re certain that you’ll find our incredible dealership to be well worth the drive. After all, the Buy Here Pay Here landscape can be intimidating, limiting and costly and we think you deserve better than that.

What is Buy Here, Pay Here?

Simply put, Buy Here Pay Here (BHPH) is an option that many credit-challenged people are unaware of. A BHPH dealership is willing to step in and serve as the lender, for those buyers under served by banks, credit unions of traditional financiers.

This allows those who have either a lacking credit rating or no credit history at all, to receive the financing they need. And while there are many misconceptions about the BHPH marketplace, it’s important to understand its nuances along with the fact that not all of these dealerships are created equal. In other words, some of those misconceptions are born from the actions of less-reputable dealerships.

The Elephant in the Room

Stop us if you’ve heard this one before. Someone in need of a reliable vehicle finds themselves limited by the auto financing options available to them, due to their subprime credit score. If approved, they’d be subject to a significantly higher interest rate, driving up the overall cost of that vehicle. Sound familiar?

To put that scenario into a real-world context, the average APR (Annual Percentage Rate) on a 60-month car loan (for customers with good credit) falls in around 4.21%. That said, the national average for new and pre-owned car loans combined ranges from 3-10%. But if approved, those with challenged credit (scores below 580) are likely to be subjected to a much higher APR.

But this is where it becomes important to separate the options that are available to you from both widespread misinformation and the misconceptions that we referenced above. A quick internet search might convey that a BHPH Dealership will hit you up for an APR% in excess of 30%. And while some less-reputable dealerships will charge the maximum rate allowed by their respective state, such swindlers are a minority. In reality, the majority of BHPH interest rates still fall in below 20%, and that higher rate is designed to offset the risk being taken on by the dealership. They are, after all, providing financing to those who have had issues paying their bills. So will you pay more for a BHPH vehicle purchase than someone with good credit would expect to pay? Absolutely. But a reputable dealership like ours will assess that risk fairly and will do our best to minimize the expense to you.

Additional misinformation regarding the BHPH landscape surrounds the topic of a downpayment. Some might tell you that a dealership will require you to make a downpayment close to what they paid for that vehicle. The rationale was that doing so helped the dealership to protect themselves against any potential loss or repossession. And while such practices will inevitably differ between dealerships and based on geographies, this is widely outdated information that dates back to the birth of the industry back in the 1950s. By today’s standards, higher value retention, the exponential increase in wholesale pricing and limitations of the average car-buying budget would make such expectations unreasonable.

We want to be candid about such concerns since misinformation might discourage some people from seeking the assistance of a BHPH dealership. There are no hard and fast rules when it comes to offering superior customer service. In our desire to be a trusted partner for all of our valued customers, we look at each financing agreement individually and on its own merits. Don’t you deserve as much? (We certainly think so).

Limitations in Selection

Another example of outdated stigma commonly associated with BHPH dealerships comes in a perceived lack of selection. Sure, that might be the case with smaller dealerships whose existing inventory limitations are spotlighted once a percentage of that inventory has been portioned off for BHPH customer, but here at McCluskey there’s no shortage of options to choose from.

Whether you’re in search of a car, truck, crossover or SUV our vast selection of gently-used vehicles provide you with plenty of choices - no matter your budget, or financing needs. Held to the highest standards of quality, each of these vehicles has been scrutinized by our team of certified technicians before being added to our available inventory. Selection, quality, dependability? These should never be concerns of yours when searching for your next vehicle, and at McCluskey they never are.

A Step in the Right Direction

As mentioned earlier, we understand that life has its unexpected twists and turns; it’s the reason we’re so dedicated to helping those in need of a better car-buying option and experience. But the real satisfaction comes in helping them to take a step in the right direction, in terms of restoring the strength of their finances and credit rating.

That’s right. By working with our BHPH team, you’re taking the initiative to break yourself free from the endless loop of bad credit. A car loan is a serious commitment and is weighted accordingly in the eyes of the credit bureaus. With diligent on-time payments made to McCluskey, you are reshaping their perception of your reliability and credit-worthiness. It’s a stepping stone to a better tomorrow, where your finances are strengthened, and your next vehicle purchase might come with a significantly lower APR% and overall cost.

Visit us at McCluskey Automotive!