Are “Buy Here, Pay Here” Dealerships the Only Way for Me to Get a New Car? – Indianapolis, IN

May 17th, 2019 by

An out of focus man is virtually selecting a car instead of doing a buy here, pay here in Indianapolis, IN.

For much of America, reliable transportation is a must. Our sprawling cities have made it so that getting from point A to point B is becoming an increasingly long venture. Unless you live in an inner city where public transportation is reliable and cost effective, having your own vehicle is as important as it has ever been. But not everyone can just go out and buy a new or even used vehicle. Buying a car is a hefty investment, and it is not one that just anyone can go out and make at any time. One option that Indiana drivers have found to be somewhat effective is the buy here, pay here in Indianapolis method.

Indianapolis is one of those sprawling metropolises. It has more interstate interchanges than any other city in the country, hence Indiana’s well-deserved nickname “The Crossroads of America.” These stretching and overlapping interstate exchanges are very difficult to travel by foot, not to mention incredibly dangerous. So, you need to get a car. Problem is, your credit is not so hot. Even if you can get a car loan, you might be paying through the nose for it with the interest.

Methods to Buy a Car

First, we will look at big car dealerships and how they treat those looking for a car loan. For the most part, big car dealerships deal with banks or other third-party lenders. Since these dealerships have the most business of anyone that sells cars, they can be more selective on who they choose to work with.  They will primarily only work to extend loans on the ones who are the safest bets to be able to pay them off on time. For those that they do choose to take a chance on, they can charge outrageous interest rates.

While it may be their prerogative to do this, it really handcuffs any potential buyer there. You can either play by those rules (if you are even allowed to be in the game), or you can go elsewhere. The elsewhere is often times a buy here, pay here dealership. These dealerships offer car loans to those that are turned down by big car dealerships, banks, and other third parties. They are often a lifesaver for those who cannot get a car through a big dealership or private transaction.

However, these buy here, pay here dealerships are not always the Godsend they might seem to be. For starters, they will offer car loans to virtually anyone, but they will do so at extreme interest rates. They could charge you up to 30% interest on what the car is worth. The average interest loan for a buy here, pay here establishment is only around 20%, but even that is considerably more than what you could expect from a dealership or bank.

Dealerships and banks usually deal in the 5-10% range, although they could go lower. Some corporate dealerships are authorized to even do 0% for specials and sale pushes. However, these deals and lower interest rates are for the privileged that could actually afford higher interest rates. Seems a little backwards, doesn’t it?

As such, those with less than stellar credit are often forced into less than ideal interest rates offered by buy here, pay here establishments. If you opt into one f these deals, and you pay all of your notes on time, you will get a car, sure, but you will pay far more for it in the long run than what it is actually worth.

Additionally, buy here, pay here establishments are not confined by many of the rules that big car dealerships are. At a superstore, particularly those linked to major automakers such as Ford, General Motors or Toyota, the dealership is required by law to accurately and promptly report all payments or missed payments to credit bureaus. These reports directly impact your credit score, making future large purchases easier or more difficult.

Smaller dealerships often do not report these transactions. It is difficult for the authorities to track all properly and improperly reported transactions. It is easy for smaller businesses to slip through the proverbial cracks. These smaller dealerships know this and are far more likely to misrepresent your payment history. It is unethical practices like this that have given used car dealerships and mom-and-pop dealerships across the country a bad reputation. Not all of them are like that, but stereotypes do exist for a reason.

What Now? Online.Cars

Two young women are standing next to a Buick Encore while looking up Online.cars on a tablet as an alternative to buy here, pay here in Indianapolis, IN.

So, now you are stuck between not being able to get a car from a big dealership and not wanting to trust the buy here, pay here place that may not treat you fairly. Where do you turn now? Online.cars, that’s where. Online.cars can extend an auto loan with a great interest rate, all from the comfort of your couch.

Go to Online.cars and enter in your information, such as name, address, monthly income, and phone number. Do you know what is missing from our qualifications? No social security number, no date of birth. The sensitive information that could get your identity stolen is none of our business. We will let you hold on to that. Once you have entered in just the most basic information, we can get you pre-qualified almost instantly.

Have you, or anyone you know, ever gone to a dealership prepared to pay cash for a vehicle, only to be told you had to fill out a credit check? The dealer may say that they need to verify your identity, and may even invoke the Patriot Act. Well, that is a lie and is also illegal. If you do not expressly consent to a credit check, those dealerships cannot legally run one on you. They do it to get an accurate assessment of your financial position, in order to try to up-sell you and make more money. At Online.cars, we don’t do that. We can run a credit check, with your permission, but we would never invade your privacy to make an unscrupulous dollar.

While you are here, you can check out our vast inventory of vehicles available. Our network extends all over the country, so you have access to any vehicle from Acura to Volvo, from Alabama to Wyoming and everywhere in between. We also have tools to allow you to sort by monthly payment, down payment, body type, make, model, color… you name it, you can find it at Online.cars. Even vehicles you didn’t know existed, we’ve got those covered, too.

Even though our physical world is growing and sprawling out in every direction, our virtual world is making it very small and manageable. Business, communication, education and most other walks of life are being conducted over the internet every day. And every day, our virtual world grows with more information. Everything happens online now. You are reading this online, so you know how you got here.

With so much of our daily lives taking place online, why not take the utmost advantage of it? Online.cars offers everything that a dealership website does, only more so. Since we are connected all over the country, we are not limited to one city or community. So, if you are looking for a new vehicle in the Indianapolis area, try the Online.cars community.  We have all you are looking for, and so much more.