What is CARFAX?

August 23rd, 2007 at 10:41pm By Dan
Under Car FAQ: Car History: Car Inspection: CarFax

CARFAX is the leading provider of vehicle history information. CARFAX Vehicle History Reports, created by using the vehicle identification number (VIN), unique to each vehicle, along with title documents, are the key to unlocking each vehicle’s past. This information is a useful tool for consumers when buying any used vehicle.

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How is “buy here pay here” different than traditional financing?

July 31st, 2007 at 08:38am By Mike Lambert
Under Buy Here Pay Here: Car FAQ

How is “buy here pay here” different than traditional financing? This is a common question asked by people searching for non-traditional car financing options.

Buy Here Pay Here (BHPH) financing basically means there is no third party involved, it is strictly a car loan offered through the dealership on their terms. Because people looking for BHPH typically have a very poor credit rating the only real benefit they receive is that they can obtain a car loan and a car.

Differences with the Buy Here Pay Here financing experience:

• The dealership will examine your credit first before you look at cars
• Once they know the amount of your down payment and how much of a monthly payment you can afford then you only look at cars within those parameters
• Weekly or bi-weekly payments made in person at the dealership
• Dealership may or may not report your payment to credit reporting bureaus

Buy Here Pay Here financing does not differ in many ways from traditional car financing, however, the dealerships has and maintains all the power in the financing relationship. You must be prepared to make the necessary trade offs that come with BHPH in order to get the benefit of owning a car.

A site for Auto Financing is an excellent place to begin your search for car financing options.

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What are the risks of using a “buy here pay here” car dealer?

July 31st, 2007 at 08:38am By Mike Lambert
Under Buy Here Pay Here: Car FAQ

If you are looking into non-tradtional car loan options you need to know the risks of using a “buy here pay here” car dealer? This type of dealership is not always a bad option, but it can be and you need to prepare yourself for potential pitfalls.

Buy Here Pay Here Risks:

• Very high (sub-prime) car loan rates
• The dealership fails to report your ontime payments and your credit score does not improve
• Not all BHPH dealerships are ethical and they might sell you a lemon on purpose

These are all very important risks for you to consider and you must do your homework.

You need to know if you can afford an inflated APR. You must demand that the dealership report your timely payments to credit reporting agencies otherwise your credit score will not increase. You must ensure that the dealership is legitimate. Call the Better Business Bureau in your area to check if consumers have reported problems at a dealership you are considering.

Buy Here Pay Here dealerships are sometimes your only option left to get a car. This fact makes it essential that you prepare yourself for the risks involved in doing business in this market.

Auto Financing is an excellent place to begin your search for car financing options.

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Does “buy here pay here” report to credit agencies?

July 25th, 2007 at 08:14pm By Mike Lambert
Under Buy Here Pay Here: Car FAQ

Buy Here Pay Here (BHPH) loans from used car dealers have many drawbacks and potential pitfalls if you are considering this option.  However, if you have a very bad credit score, Buy Here Pay Here dealerships might be your only option to get a loan to purchase a car. Another important benefit is once you begin making payments to your BHPH dealership they can report this credit agencies (many do report and many do not), and this will improve your credit score. However, you must ask the dealership before securing the loan if they will report to the credit agencies. If this is a key component of the deal get a guarantee from them that they will report your timely payments to Experian, Equifax, and Transunion. If you are currently trying to save money on a car loan a site like Auto Financing  can be a great help to your search.

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How do I find “buy here pay here” car lots?

July 25th, 2007 at 08:13pm By Mike Lambert
Under Buy Here Pay Here: Car FAQ

You know you want to try to get a car loan at a Buy Here Pay Here (BHPH) dealership, but how do you find these car lots that offer this service?

Discovering these Buy Here Pay Here lots is not as easy in the “Information Age” as it could be. There is no quick search you can do that will list all the BHPH dealerships in your area. You might need to try the tradition methods such as the following:

• If you drive past dealerships you might see “Buy Here Pay Here” written on the windshields of cars for sale.
• Another term dealerships will use is “We Finance.”
• Calling local dealerships

To save time and money when getting a car loan you can try a site for Auto Financing.

Popularity: 21% [?]

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