If you are looking for a used car in Pensacola, chances are you have heard of Buy Here Pay Here Pensacola. There are many dealerships that offer in house financing for their consumers. When shopping for a car and essentially a car loan in Pensacola, you most likely have done a bit of research and you may have heard some things about Buy Here Pay Here that have made you a bit nervous.
If you have heard some things that have made you nervous about a Buy Here Pay Here program, we are going to provide you with some answers to some of the more common myths that have been floating around. You should also note that each state, including Florida, has laws regarding these types of in house financial programs, so you should not worry about using them.
Interest Rates will be Higher at a BHPH Lot
There are some dealers out there that are going to charge the maximum allowable rate in Florida for their car loans. However, these are actually in the minority. When searching through several sources you may find that the interest rate at a BHPH car dealership in Pensacola may be a bit below or slightly above 20%. However, if you compare this to the average interest rate for deep subprime loans (loans provided to those with a FICA score lower than 549) you will see that the average is around 17.9%. A subprime rate, for those who have a FICA score from 550 to 619 averages at around 14.4%. Since BHPH dealers lend out their own money, a rate that is in the same ballpark seems like it is pretty fair. Of course, it is important to note that rates change all the time and they will fluctuate up and down all the time. The rate that you receive will depend directly on your financial situation.
This information is simply old and dates back to when these types of car loans were first started in the 1970s. The original business model would require a down payment that was close to the total inventory cost for the car. However, the increase in cost for vehicles along with the small budgets of the consumers meant that this model did not last very long.
Today, the interest that the car dealer collects is typically not a substantial profit for the dealership. It is typically used to offset the bad debt charge offs that these auto dealers have to deal with. A Buy Here Pay Here Pensacola car dealership is assuming a pretty high amount of risk when they offer this in house financing opportunity.
It has been implied that when purchasing a vehicle from a Buy Here Pay Here Pensacola car dealer, you are not going to get a warranty. However, more and more car dealers are offering some type of warranty on the cars that they sell. Furthermore, many car dealerships will offer an optional service contract for their consumers. These products have been designed for dealers that offer in house car financing and the vehicles that they sell are more readily available at costs that are much more reasonable. The competition continues to expand, which is great for the consumer as there are more and more deals becoming available.
Buy Here Pay Here Pensacola Applications
There are many benefits of using Buy Here Pay Here Pensacola. The dealerships in our network are willing to work with everyone, no matter what type of credit that they may have. These dealers are trying to help everyone out who is trying to get money for their vehicle.
The application process is quite simple. All you have to do is provide some basic information on an application. You can fill out the application online using pretty much any device that has internet service, from your mobile phone or tablet to your personal computer. Once the application is completed, and if you are approved for a car loan, you will be contacted by a service specialist who will discuss your options with you.
When you apply for in house financing, the dealership will be the one that is providing the vehicle loan. This increases the chances of being approved as there will be several car dealers competing for your business. In addition, this is a great way to improve your credit score as you will be paying off a loan from a financial institution. This can lead to better loans and rates in the future.
If you are in the market for a used car in Pensacola, fill out the application today and you could be driving your new vehicle as early as tomorrow.