The Requirements
When visiting a “buy here pay here” dealership to purchase and finance a vehicle through in-house financing, it’s essential that certain items be brought along for a successful transaction. Here are some essentials items:
Proof of Identification: Bring along an official government-issued identification document such as your driver’s license, passport or state ID card as proof of identification.
Proof of Income: Submit documents demonstrating your ability to pay payments such as pay stubs, bank statements or tax returns as evidence that will help verify your ability.
Proof of Residency: For proof of residence purposes, bring documents confirming your current address such as utility bills, lease agreements or bank statements that verify it.
Down Payment Amounts: Provide the dealership with either cash, certified check or money order payment as specified for down payments.
Trade-In Documents (if Relevant): If you plan on trading in your current vehicle, bring its title, registration document and any relevant paperwork with you.
Insurance Information: Before purchasing the new car, contact your insurer in advance to secure coverage for it. Be prepared with proof of coverage or be ready to create a policy if needed.
References: Some dealerships require personal references, so be ready with contact information for several individuals who can vouch for you.
Method of Payment: Although many “buy here pay here” dealerships accept cash and checks as acceptable payments methods, it’s wise to inquire in advance whether other methods of payment will also be accepted.
Questions and Notes: Make a list of questions for the dealership to address during your discussion, along with a pen and notepad to take notes during it.
Bring these items with you so that you are fully equipped to complete the necessary paperwork, demonstrate eligibility for financing options, and potentially drive away in a new car!
Questions to ask for buying buy here pay here “used” car
When buying from a buy here pay here (BHPH) dealership, it’s essential to ask specific questions in order to assess its condition, history and financing terms. Here are some key inquiries:
Vehicle History:
- Can I view the complete vehicle history report, including any accidents or title issues?
- Has this vehicle ever been involved in any major collisions or repairs that required significant efforts to fix?
- Can you provide maintenance records for this vehicle?
Are there any warranties or guarantees on my vehicle?
Vehicle Condition:
- What is the current condition of the car, prior to purchase?
- Are any known issues with it or repairs or maintenance work being conducted before purchase, and are any repairs necessary before purchase, and additionally is there any damage or cosmetic concerns I should be aware of before buying the car before purchase?
Financing Terms:
- What is the total price of my vehicle including any fees or charges?
- What is the interest rate on financing and how is it calculated?
- How long is my loan being taken out over and what are its payments per year?
- How much down payment must be made upfront?
- What will my monthly payment and its duration be?
- Are there any penalties associated with early repayment or paying off my loan early?
Payment Process and Options / Vehicle Ownership:
- Will the title be transferred immediately upon purchase?
- How can I pay my payments (in-person, online, mail)?
- Is there a grace period for late payments?
- What are my consequences if missed/late payments can I setup automatic payments, and are there fees involved for this service?
- Can I make additional payments or exceed my minimum monthly installment without incurring penalties or additional interest charges?
- May I sell or trade-in the vehicle before repaying my loan?
- Are there any restrictions when transferring title or registering the vehicle?
Additional Fees and Policies:
- Are there any additional fees associated with purchasing or financing the vehicle?
- Are there restrictions to where I can service or repair it after purchase?
- What assistance is offered should my vehicle require repairs post purchase?
Before making your decision, it is crucial to ask pertinent questions of any BHPH dealership and carefully review the answers provided by them in order to ensure transparency and clarity when making an informed decision. Furthermore, ensure you fully comprehend all terms and conditions stated within sales or financing contracts as they apply to sales/financing agreements.
Questions to ask for buying buy here pay here “new” car
“Buy here pay here” (BHPH) dealerships typically specialize in selling used cars rather than new cars; however, should you come across one offering new cars here are some questions to pose:
New Car Availability:
- Will there be new car models available?
- What brands and models of new cars do you offer?
- What brands/models of new cars do you offer (brand and model numbers available or can they be ordered according to preferences?)
Pricing and Fees:
- What is the total price for purchasing a new car, including any additional fees or charges?
- Are there any dealer markups or add-ons to the manufacturer’s suggested retail price (MSRP)?
- Can you provide a breakdown of all costs associated with buying this new vehicle?
Financing Terms:
- Do you provide in-house financing for new cars?
- What is the interest rate and calculation process associated with new car financing?
- What are the loan’s duration, number of payments and down payment amounts required?
- Are any special restrictions associated with financing offered on this loan?
- What will my monthly payment and length be?
- Are there any penalties associated with early repayment or paying off my loan early?
Warranty and Maintenance:
- What warranty coverage comes with the new car?
- Are there any extended warranty options available?
- Can I have the new car serviced or repaired at any authorized dealership or service center?
Ownership and Title:
For my new car purchase, two questions come into consideration regarding ownership and title: (1) Can it be registered directly under my name upon purchasing; and (2) If so, are there any restrictions when transferring title or registering it?
Payment Process and Options:
- How can I make payments (in person, online, by mail)?
- Is there a grace period for late payments?
- What are the consequences for missed or late payments?
- Can I set up automatic payments?
- Are there any fees for this service?
- May I make additional payments or exceed my monthly minimum without incurring penalties?
Additional Fees and Policies:
- Are there any additional fees associated with the purchase or financing of the new car?
- Are there limitations on where I can have the new car serviced/ repaired?
- What happens if the new car needs repairs under warranty? Do you offer any assistance?
Note that BHPH dealerships tend to specialize in used cars, making finding one with in-house financing an unlikely occurrence. Traditional dealerships and manufacturer financing are more often the go-to for purchasing new cars.
Common policies of buy here pay here
Specific policies of buy here pay here (BHPH) dealerships can differ, but here are some typical policies associated with buy here pay here dealerships:
In-House Financing: BHPH dealerships typically provide in-house financing options, meaning they provide loans directly to buyers without using third-party lenders.
Credit Checks: BHPH dealerships tend to prioritize buyer ability over credit history when conducting credit checks; their credit checks tend to be less stringent compared to traditional lenders.
Down Payment: BHPH dealerships typically require a down payment, an upfront payment made at the time of sale, which varies based on dealership and vehicle model.
High Interest Rates: Bad-Horse Payday Loans typically feature higher interest rates compared to traditional financing options, since these loans often cater to buyers with limited or poor credit histories who present more of a risk for dealerships.
Weekly or Bi-Weekly Payments: BHPH dealerships often structure loan repayments on a weekly or bi-weekly schedule to better match up with borrower pay schedules.
On-Time Payments: Punctual payment is essential when financing through BHPH financing, as missed or late payments could incur penalties, late fees or even vehicle repossession.
Vehicle Selection: BHPH dealerships typically carry a limited selection of used cars, consisting of older models or higher mileage cars that they acquire through trade-ins or auctions.
Vehicle Quality and Inspections: BHPH dealerships may perform their own inspections and repairs before offering their cars for sale; however, for optimal performance it’s always wise to have an independent mechanic conduct an independent evaluation before purchasing one.
Warranty Options: Some BHPH dealerships may provide limited warranties on the vehicles they sell, which can vary in terms of coverage and duration – it’s important to carefully understand these before finalizing a purchase decision.
Repossession Policies: Should a borrower default on payments, BHPH dealerships reserve the right to repossess their vehicle. Each dealership may implement their own repossession policy regarding how many missed payments or grace periods must pass before initiating repossession proceedings.
As part of your research process for selecting a BHPH dealership, it’s crucial that you carefully study and comprehend their policies and terms to make sure they align with both your financial capabilities and needs.