There are times when we may find ourselves in a situation where we are in dire need of an automobile. There are many companies who advertise that they will extend credit to buyers no matter how low their credit rating may be. While on the surface, it seems that they are being generous and trying to help out those who are in a bind, this is not always the case. There are a couple of things that should be avoided when looking into buy here pay here financing.
The best way to avoid a bad loan situation is to carefully read all the terms on the paperwork. Make sure every word of every section is read thoroughly before signing any documents. Also remember that if the salesperson is all too eager to make the sale and is applying way too much pressure for your comfort, it may very well be a scam of some sort. Take time to make the decision. High pressure, overly aggressive salesmen are the first sign something is not “above board” at buy here pay here car dealerships.
Auto sales who guarantee a loan should be avoided. Sure, they will give anybody a loan, but the interest rate may be out of this world.
Be very careful when asked to find a co-signer. Many times the paperwork is changed, and the co-signer is put down as the principal borrower! this can end up harming both your credit, their credit, and your relationship in a profound way.