What Are "buy Here, Pay Here" Car Lots?

What Are "buy Here, Pay Here" Car Lots?

Buy Here Pay Here car dealers handle customer financing themselves, and they often target customers who cannot get loans through traditional means, notes About.com. People who buy cars from these dealers usually have to pay weekly at interest rates generally around 25 percent.

Buy Here Pay Here dealers typically sell older cars with high mileage and at prices that are well above their book values, states About.com. While many of these dealerships are smaller, independent operations, a few larger dealers operate in multiple states. Some dealers that offer traditional financing options also offer Buy Here Pay Here options within their dealerships. People with bad or no credit histories are most likely to purchase vehicles from Buy Here Pay Here dealers.