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Buy Here Pay Here Used Car Financing: Are They Really Expensive?
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Buy Here Pay Here Used Car Financing: Are They Really Expensive?

3 लोग, बच्चा, कार और वह टेक्स्ट जिसमें 'Family Auto We Finance Excitement' लिखा है की फ़ोटो हो सकती है

Popular opinion on the internet says that financing from buy here pay here car lots in Greenville, SC is expensive. It also says that you should rather wait for your credit score to improve, pay off your existing debts diligently, and then finance your used car from a bank where the interest rates are much lower than buy here pay here financing. If you just look at this side of the story, all of these expert tips will make sense. But when you take the other side into account, the perfect picture will come crashing down. Buy here pay here financing plays by the market’s rules. And it is not at all expensive if you plan your auto credit to suit your budget.

Why buying a used car cannot wait?

Let’s assume you take the expert opinion route. That is, you wait for your credit score to improve and then finance a used car with a bank. Now, to improve your credit score, you will either have to pay off your existing debt or drastically improve your income. And even you know that both of those tasks are herculean in nature given America’s current economy. If you decide to wait, you might have to wait for an eternity. You will have to live your life without a car just because you want to save a few hundred dollars over 3 years. Instead, if you visit a buy here pay here in Greenville today, you can finance a vehicle right now and improve your life without waiting. A car, in fact, can help you to find better job prospects.

What about the expensive part?

Yes! When compared with banks, the interest rates in a buy here pay here in Greenville, SC are higher. While banks will offer you auto financing at around 5% annually, buy here pay here dealerships charge around 24-32% annually. But this is in line with the market rules. Any lender has to be compensated for financing a bad credit score holder and a high interest rate is the way to do it.

But you can offset this high interest rate factor by:

1.Paying a high down payment while buying a used car. This will reduce the financing amount and thus the interest rate associated with it.
2.Go for an older car with a low price tag. Depreciation works to wipe off most of the vehicle’s dollar value and you finance it easily without going overboard.
3.Lastly, you can limit your credit span to just 3 years. The net interest rate payable immediately reduces and you make savings on your net financing.

Now, come back to banks again. They do not finance older used cars. This means that you will have to buy a fairly new model with a high price tag even when you can do without it. And just because the cost is now higher, you will have to draw out your auto loan for 5 to 7 years and pay interest for that many years.

BHPH financing is not expensive

It is an easier way to finance a used car now even when your credit score is poor. Family Auto, one of the top buy here pay here car dealerships in Greenville, SC, helps you with affordable and easy financing. You can trade-in your old car with us to pay a high down payment. And you can opt for our 3-year credit plan to limit the interest rate payable. All our used cars come with 2 years/36,000 miles warranty which assures the underlying quality of any vehicle of any age that you decide to buy. We no longer live in an era where banks are the only source of financing. Times have evolved and Family Auto is your way to buy a used car easily and improve your life.

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