Buy here pay here car lots are used car lots that are operated within a network of dealers participating in the buy here pay here car program
. These dealers are located throughout the US and Canada. The program is intended to be utilized by first time buyers, young buyers, buyers with various problems with their credit, or buyers that simply have no credit.
One process is the person interested in buying a used car completes an on line credit application which is provided by the buy here pay here car program. This is then submitted and within a specified period of time, the application is circulated to participating car dealers. When the application is accepted by one of the dealers, the applicant is notified within a specified period of time that the application for credit has been accepted. The applicant then goes to that dealer and buys a new - used car.
The buy here pay here car program also works where the potential buyer goes into a dealership that offers this program. Ideally this dealership has the car you are interested in. As the dealer reviews your credit application with you, they are also determining just how much you can actually afford to pay on a regular basis for the car. It works out really well if the car you are interested in is one of your choices for a new car. Also it works out best for all parties if the dealership is near where you live.
This program is based on the buy here theory where you actually buy the car directly from the dealer where you submitted the credit application.
This is different than where you might go into a dealer that only sells one or two brands of vehicles and those vehicles are financed through the car manufacturers financing arm. With these dealers you might go shopping with the salesperson through the various inventory available at other dealers. If you find the exact vehicle you want with all the options, the dealer will have it brought into the lot for you to buy. In this case you also mail in your payments directly to the finance company that provided the financing for the vehicle.
The other part of the program is the pay here aspect which means you also pay for the car at the dealer. You actually take the cash or money order or whatever the means of the payment directly to the used car dealer where you purchased the car. The dealer has the option to set up various payment plans. They work with the applicant to structure the repayment plan to match the buyers budget. It may require a weekly or bi-weekly payment. But the object is to make it manageable for the buyer. The dealer really doesnt want to have to take back the car if the buyer fails to make the payments on time. The program is intended to get a potential buyer into a car of their choice.