Buy here car dealerships

People buy cars regularly, and even though the brand and other characteristics are still significant, the main concern is how to pay for it.

It’s possible to use different payment methods. Some pay fully in cash, and others prefer loans from a dealership, bank, and credit union. 

The most popular option is a buy here car dealership, and here is how it works.

What are buy-here car dealerships?

A buy-here car dealership is an excellent opportunity to purchase a vehicle for people who aren’t qualified for conventional loans. There is no credit check for such dealerships, and only income verification is required.

Yet, since there aren’t many requirements for these dealerships, there’re less efficient terms and higher rates.

Companies offering these dealerships provide cash without cooperating with third parties. So, if a debtor doesn’t return the sum in time, the dealer will repossess the vehicle. That’s why it’s better to avoid using this option for buying a car.


This method has several advantages:

  • Easy to buy a vehicle;
  • People aren’t required to provide their credit history;
  • Dealers are ready to take older trade-ins.


This option has disadvantages, and it’s better to know them before buying a car:

  • Higher interest rates (they can rise to 20%);
  • Dealers require to track the car;
  • Not all cars are available (dealers allow selecting vehicles from a limited number of options);
  • Peculiar payment methods (the time of the repayment differs, and in most cases, it’s impossible to use a credit card for such purposes).

Do car dealerships impact credit scores?

The info about getting the loan isn’t reported to credit bureaus. This method isn’t the best choice for people who want to improve their credit scores.

That’s why people who choose buy-here car dealerships will have to pay higher rates, and it won’t positively impact their credit scores.

Overall, buy here pay here car dealerships are the best way to buy a vehicle, because they can be used if someone needs an auto urgently.