Buy here pay here used cars. (Pittsburgh, Liberty: sales, 2013, credit)

[givetonyrobbinsalozenge]

Has anyone had a good experience with a buy here pay here used car dealer? My credit is not that good so I have been looking at a few of these places. The reviews I have read online are very negative for many of them.

[MissShona]

Originally Posted by givetonyrobbinsalozenge

Has anyone had a good experience with a buy here pay here used car dealer? My credit is not that good so I have been looking at a few of these places. The reviews I have read online are very negative for many of them.

Well they overcharge you....no secret there. My rough guess is that you pay 30% more for a car from a BHPH place as opposed to elsewhere.

However, if you need a car, and you aren't willing to risk driving around a $1500 rust bucket, they may work out for you. What you could do is gather up a big down payment (50% more more) and then pay off the balance as soon as possible. That may save you some on interest (ask about early repayment penalties).

Other than that, you could try private sellers. Many people who are privately selling cars just want the thing gone. Also, most people have no problem stating that the car was sold for $600 (especially if it's older) so that you can save on paying state sales tax. The downside of private sales -- not as big of a selection and sometimes you just have to wait around until something you want comes around.

[I_Like_Spam]

Originally Posted by givetonyrobbinsalozenge

Has anyone had a good experience with a buy here pay here used car dealer? My credit is not that good so I have been looking at a few of these places. The reviews I have read online are very negative for many of them.

Subprime loans are very risky for the lender- a number of larger firms involved in this kind of business have gone belly up- these dealers have to charge more for their vehicles to compensate for the risk and stay in business. It isn't like they can charge 40% interest on the loan, so they boost up the price and make their money on that end.

[givetonyrobbinsalozenge]

I understand all that. I'm just wondering if anyone can recommend one that is relatively honest and will stand behind their vehicles.

[Clint.]

Interesting you should ask this, as I've been thinking about this lately, too. I stopped by Doman auto sales on Rt. 51 last week and asked about a white pick up truck for $1555 sitting on the lot. The guy told me it was already sold. I asked for any other vehicles under $3,000 - paying cash - and he said that he didn't have any available, although I saw a couple on the lot. I wasn't sure what to make of it. Part of me felt it was relatively honest of him to not try and pressure me into anything, but I also wonder why he wasn't more motivated - does he just want to sell something so he can charge a high rate?

I also looked at a car, a 1996 Jaguar, at Used Car World (great name, by the way) on West Liberty Ave. Other than being a money pit with inevitable future repairs just waiting to add to its current problems, the salesman wasn't overly pushy and when I walked he didn't try and steer me into anything else or ask for my number to subsequently call and follow up. Used Car World has two locations, so evidently they are successful enough to expand rather than eke out a minor existence on the fringe.

Do you live in the City? If so, you might consider looking out in the more rural areas for deals. Even though I live in the midst of Rt. 51 West Liberty Ave. used car buy here pay here mecca I've started too explore places farther from Pittsburgh, like Finleyville and New Eagle - seems like the deals/quality are better and there is a higher level of trust out in the country.

My brother is a mechanic at a local factory dealer and has been slapping inspection stickers on my work beater for several years. He has sadly refused to continue the practice into 2013. The last straw was my use of a hasp hinge bolted on to the fender and hood and padlocked to hold down the hood. I thought it was an ingenuously inexpensive solution that added to the poor cars character, but he was not amused. Good luck.

[pit2atl]

Yeah the interest rates are probably outrages. If I were you I'd look on craiglist for a late 90's ford Taurus. They're usually good vehicles and not to expensive. Sorry not to really answer your question.

[sparrowmint]

Originally Posted by Clint.

Interesting you should ask this, as I've been thinking about this lately, too. I stopped by Doman auto sales on Rt. 51 last week and asked about a white pick up truck for $1555 sitting on the lot. The guy told me it was already sold. I asked for any other vehicles under $3,000 - paying cash - and he said that he didn't have any available, although I saw a couple on the lot. I wasn't sure what to make of it. Part of me felt it was relatively honest of him to not try and pressure me into anything, but I also wonder why he wasn't more motivated - does he just want to sell something so he can charge a high rate?

There's a big scam amongst some used car dealerships where they're only interested in subprime loans that are virtually guaranteed to fail and get the car repo'd, and then they sell the car again.

Stuff like this: Dealers' repeat sales of same used car surprisingly common - Los Angeles Times

[Moby Hick]

Originally Posted by pit2atl

If I were you I'd look on craiglist for a late 90's ford Taurus. They're usually good vehicles and not to expensive.

Money isn't that important.

[Clint.]

Originally Posted by sparrowmint

There's a big scam amongst some used car dealerships where they're only interested in subprime loans that are virtually guaranteed to fail and get the car repo'd, and then they sell the car again.

Stuff like this: Dealers' repeat sales of same used car surprisingly common - Los Angeles Times

Oh, how unscrupulous! The Used Car World dealer seemed to be above that, apparently - they had a "cash price" listed under their advertised price using their credit. So, they are definitely Buy Here, Pay Here but maybe have a little more confidence in their vehicles to make decent sales compared to the other lot that only wanted to move cars by getting customers hooked with their credit scheme (if that's what the intention was).

[robrobrob]

Buy here pay here lots make money when people actually make their payments. People only make their payments if they car is running. So, they have an incentive to sell cars that actually run and will run for a bit.