If you’re looking to buy a car but you don’t have great credit, you could try buying a used automobile from a “buy here, pay here” car lot. It’s a great option, but you need to be aware of just how these lots operate and how they are different from traditional used car lots. Knowing what you’re dealing with can help you make a proper and informed decision. Today, we’ll give you some information to help you on your way.
Buy here, pay here car lots are used car sales businesses in which an automobile seller will also be the one to lend you the necessary money to buy the car provided you choose to purchase the car from their lot. They are typically a place for buyers who aren’t able to find proper financing elsewhere. Wheel City Auto Finance Centers are proudly recognized as a top buy here, pay here dealership in the communities they serve.
Many people who have tight budgets or bad credit and end up using buy here, pay here car lots tend to assume they have no other options. The truth is that these kinds of lots are actually good and more reputable that you might think due to the fact that many of these dealers are now finance companies as well. This means that they are required to follow additional laws if they intend to keep themselves out of legal trouble which means you can rest easy, instead of worrying about being caught in a bad deal.
When dealers become financiers, they are subject to the same federal laws as a bank that is making a car loan. This means that they have to provide proper “Truth in Lending” notifications, and they are also required to be in compliance with the federal Truth in Lending Act. Regulation Z, a part of that act, requires financiers (or the car dealers in this situation) to first disclose that they have retained either all or part of the amount they charged you. They are also mandated to accurately disclose the true cash price of the automobile, as well as the amount that you’ve financed.
Automobile dealers who do the financing also have another added requirement which is to give you what’s known as a “risk based pricing notice”. If they miss this, they could be liable for statutory damages, as well as attorney fees, so again you can be sure you’re getting accurate pricing and details because the law keeps you covered.
Buy here, pay here lots can be a great help, but you need to know what you’re getting into and what the law requires before you take the plunge. Knowing all the facts can help you ensure that you get the car you need at the price you want.