Have bad credit and need wheels ASAP? While buy here pay here dealerships might sound like your kind of dealership, it’s your situation and how you handle yourself that will determine if it’s good news or bad.

Unlike the reedomautosalesidaho.com, however, these places play two roles: they will sell you the car AND finance it. This is a world without banks, credit unions, just you and the dealer who is making a deal. There’s more to the story and it sounds simple.

And there are these dealerships that specialize in conning those people with credit reports that resemble battlefield casualties. Mainstream lenders may be cool to you if you’ve come through bankruptcy, a bitter divorce or bad medical debt. However, buy here pay here dealers roll out the welcome mat.

Convenience isn’t something that comes cheap, and usually not cheap at all.

At these places, the interest rates can make your wallet weep. You can also expect to pay double or triple of what good-credit buyers paid elsewhere. Contrary, conventional auto loans may come with interest that ranges from 5 – 7%, whereas buy here pay here lots usually charge from 20 – 30%. That makes a huge difference on your final expense.

The payment schedule itself also hits different. Many of them do not even wanted monthly payments, instead they expect you to visit their dealership twice a week (or weekly) with cash in hand. Others are fitted with devices that can shut your engine down for missing payments. Late by a day? Tomorrow you could find yourself walking to work.

There are no cream of the crop vehicles to expect to browse through. Most of inventory is made up of higher mileage used cars that have carried a lot of miles. Selection is usually pragmatic not pretty.

Many of these dealers don’t report your payment history to credit bureaus, a particularly painful catch. This effectively dents the effectiveness of the diligent payments you’ve made: you’re paying above market rates, but not gaining the usual benefit of rebuilding your credit.

The plus side is that it approves at a lightning speed. Unlike conventional financing that might keep you waiting days, buy here pay here spots often will get you driving home the same day. If you have to get to work to work, that speed counts.

These same dealerships also provide an exit in the final 4 inches of transportation when all others disappeared. High interest sometimes can outweigh losing your job since you cannot make it to work.

If you are in a position of giving this a try, make yourself safe with smart moves. Research dealer reviews online. Inquire directly if they report into credit bureaus, and don’t trust the marketing that states ones report. Any vehicle should have an independent mechanic check before you buy—one small expense could keep you from major headaches.

Don’t skip negotiating the vehicle price either. These dealers make a fee for financing, and so they might have the ability to flex the sticker price. It is a good idea to read every word of the contract before you sign it, and particularly look at repossession terms for the car and any fees they might have added on.

Buy here pay here dealerships are okay for a short period of time to survive in the difficult times, but are definitely not the strong financial investment. The best approach is to use this option as a springboard to establish credit for more advantageous terms the following time.

These dealerships fulfill a gap in the market for millions of Americans who are caught credit score limbo. Although, terms that would make financial advisors cringe, they still give people access to necessary transportation, when conventional financing is not an option.

Bottom line, these places are a lifeline when you are drowning, but please understand exactly what signing up for. But with this convenience comes a heavy price for which you need to approach it with caution and a clear exit strategy path to better financial options for the future.