Tinder Creeps

Have you ever been caught in the scruffy position of your credit crumpled and in need of wheels? freedom auto sales idaho swoop in like knights, in somewhat tarnished armor, that’s where.

These dealers aren’t car salespeople in the usual sense. Let’s cut to the chase: they don’t treat customers like we’re used to. They’re the money lenders too. Think of one stop shopping that can be a lifesaver or a money pit, depending on how you play your cards.

These spots are intended for people with credit histories that will set mainstream lenders to running. Bad divorce? Bankruptcy? Piles of medical bills reached to the ceiling? Crowding out traditional banks, the dealers wave you in with a smile, when you get slammed in the face of traditional banks.

Before you make that dotted line sign on the dotted line though, hold your horses.

The interest rates at theses places will make your eyes water. These are numbers sometimes even with 20 or 30%. Noticing that these rates are single digits compared to that of regular dealerships makes many financial advisors cringe ever time they hear these places mentioned.

Payment schedules too come as a surprise. Buy here pay here spots also might be much more demanding than regular car loans, like they will ask for money weekly or bi weekly, while other require monthly payment. Others even demand that you bring actual cash to the lots of the dealership every time. Miss a payment? Installed kill switches means don’t be stunned when you go to start your vehicle the next morning and the car won’t start.

However, the vehicle selection isn’t what reads like the glossy magazines. Odometers in most of them have spun quite a few times around the clock, most of the cars having seen better days. Beggars can’t be choosers when your credit score is a golf score.

Moreover, they don’t pay the report of your payments to credit bureaus for many of these dealers. You earn about the same poor credit score pay later for a long time. Talk about a raw deal!

Some silver linings exist though. You will find quick approvals here (it can be same day). There’s no need to wait for loan officers to finish the rounds of golf because they get around to reviewing your application. The thing about it: you can drive home in your ’new’ used car faster than you can say ‘predatory lending practices.’

They also are presented as an option in the instance when literally no other doors are opening. Having transportation is sometimes necessary to keep your job, which keeps your home. That’s very odd in the cases, since even high interest rates beat the alternative.

The sting can be minimized by smart shoppers. Research the dealer’s reputation online. If it does matter to you, check if they report to credit bureaus. Always have a trusted mechanic inspect any vehicle prior to purchase – a couple bucks now, can save you thousands later.

Also, negotiate hard on the car price itself. They have wiggle room on the sticker because they make money on financing. And before signing, always, always read the fine print. Each one of those contracts is full of more traps than you find in an Indiana Jones movie.

Buy here pay here is like financial training wheels: useful when you need the training wheels, but ultimately, you’re destined to outgrow them as fast as you can. The aim should be to build enough credit on your name when you exhaust the new loan to qualify for better loans next time around.

For plenty of limited option Americans, these dealerships are the necessary evil that make up a financial system that continues to punish past money mistakes in an especially avid manner. Basically, their terms would make most financial advisors need a stiff drink, and they fill a gap in the market.

The bottom line? Theyre a place in a pinch but understand what youre getting into. When times get desperate, sometimes desperate measures are needed, but never desperate measures that make you desperate for the next five years.