Car Dealer Scam: Buy Here Pay Here

There are more and more car dealerships in the industry that offer their customers a “buy here pay here” option. However, this is something to avoid and even fear. It is a fact that the latest layoffs, foreclosures and bankruptcies have severely damaged the credit of many US citizens. Taking this into consideration banks refuse financing and have tighter lending policies. Thus, car buyers try to find other ways to finance a vehicle purchase. This is when the car dealers who have ‘buy here pay here’ policies benefit.

It should be noted that the services provided by these dealerships are necessary, but financing vehicle through these car dealers is much more expansive.

Another reason to avoid purchasing a car from these car dealers is that different car scams and dealer tricks are used here. The car buyer who purchases a car from a buy here pay here dealer usually ends up paying hundreds and even thousands more by having to make high payments on a vehicle that was totally mis-represented.

Keep in mind that you can still avoid becoming a victim of this car fraud if you do the following:

- know your credit history and your credit score
- know the vehicle you want and research it’s fair value on the internet
- research the loan rates that a credit union or bank would give for a qualifying borrower (for reference)
- be prepared to pay for a 3rd party mechanical inspection/report on the vehicle before you commit to it
- be patient and be willing to simply walk away if you feel pressured or ’smell a rat’
- invest in good advice: study a good buying guide, from insiders who can teach you the dirty tricks to expect
- be patient and confident
- ask questions and pay strict attention to financing rates and terms
- if a warranty is offered or promises made, insist that they commit them to writing — it’s the law
- ask about grace periods and repossession policies, if you think this might become an issue (or not)