However, the best way to avoid a lawsuit from the dealership is to make your payments on time Ideally, your payments should be reported to all three credit bureaus.
Can I get a pre approval without a credit check?
Buying a car from a but here pay here dealership can be a good idea if you have bad credit, but only as a last resort. The interest rates charged are usually quite high, which can make monthly payments unaffordable. This type of financing is also risky, because if you don’t make your payments, the dealership has the right to repossess your car.
The reason this is a good idea is that on-time payments can improve your credit score. If you’re unsure whether your payments are reported to the credit bureaus, you can find out by asking the dealership.
In addition, you might also be able to qualify for a loan without a hard inquiry, which is another way of saying that you won’t get denied because of your credit score. This can be a huge benefit of a buy here pay here loan, but it can also be expensive to track.
The process of buying a car from a buy here pay there dealership isn’t as complicated as it seems. They handle paperwork for you, which makes the entire process streamlined. However, the process may be different from what you’re used to. Usually, you’ll have to make a physical payment to the dealership, not a bank account payment. The dealership also doesn’t have the latest technology.