You have probably heard of the term ‘buy here pay here dealership’, but aren’t exactly sure what that means, or if it’s a good thing. Here at Easterns Automotive, we do our best to inform our customers about all aspects of the automotive world. So, watch the video above, where Joel Bassam, the Director of Marketing for Easterns Automotive Group, breaks down the differences between a traditional car dealership and a “buy here pay here” lot. You can also read on for more information.
How does a Buy Here Pay Here Lot Work?
At a traditional car dealership, financing is secured through a partner or bank. At a “buy here pay here” lot, the financing is completed by the dealer. This is the main difference between the two.
Are There Cons to Purchasing from a Buy Here Pay Here?
As mentioned above, the main difference in this type of business is that the car lot itself finances the loan. While that might seem like a small difference, it greatly impacts the consumer experience in a negative way:
- It Won’t Improve Your Credit Score: At “buy here pay here” lots, there generally isn’t any reporting to the three credit bureaus, so making payments on time won’t be positively reflected in your credit score.
- Inconvenient Payments: Many of these lots also require weekly or bi-monthly payments made on-site, which is a big inconvenience.
- Less of a Selection: Finally, “buy here pay here” lots also have a smaller selection of lower-quality, older cars to choose from.
Why is Easterns Automotive Better?
When choosing the right fit for you, remember that at Easterns Automotive Group, your job is your credit. Because we do our financing through a secure and reputable financing partner, every time you make a payment on time, you have a chance to make an improvement on your credit score! Especially if you are in the position of having bad credit, this is a huge benefit of buying from Easterns. We also offer convenient payments, on a monthly basis that can all be done online. You can even set-up and auto-pay situation, so you know it will always be on time. And lastly, Easterns Automotive has a HUGE choice of cars, trucks, SUVs and more. When you are shopping for your next vehicle, you want selection – and at Easterns, you will find it, every time.