Tag Archives: buy here pay here

a salesman talking to a couple at a dealership

Pros and Cons of “Buy Here Pay Here” Dealerships

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Posted in Car Buying, Car Selling

If you are in the market for a certified pre-owned vehicle, check out our Used Car Buyer’s Guide first. After setting your budget and deciding whether to buy from a private seller or a dealership, the next step is deciding what kind of dealership to buy from.

What Are “Buy Here Pay Here” Car Lots?

Buy Here Pay Here (BHPH) car lots distinguish themselves from other used car lots because BHPH dealerships offer on-site financing.

If you have bad credit, no credit, or in bankruptcy, you may find BHPH dealerships to be your best option. Even if you have good credit or don’t need financing, BHPH dealerships offer great deals on certified pre-owned vehicles.

While “buy here pay here” financing may be your only way to obtain a vehicle of your own, make sure you do your due diligence and make an educated decision beforehand (See: How to Buy a Used Car on Bad Credit).

Buy Here Pay Here lots have to abide by stricter laws since they are also effectively a finance company. Any BHPH lot that does not follow state and federal rules and regulations will not be in business for very long.

For example, all BHPH dealerships will have to follow the Truth in Lending Act (TILA), which requires the dealer/financier to disclose the final cash price, the amount financed, in addition to other necessary information for the consumer to shop and compare.

Other laws and regulations include the Fair & Accurate Credit Transaction Act, State Usury laws, and the Fair Debt Collections Practices Act.

Buy Here Pay Here Pros

In-House Financing

The first obvious advantage of BHPH dealerships is the ability to purchase and set up loan payments at the same place. Instead of getting an auto loan from a bank or another third party, you’ll be able to get everything done at the dealership.

Your payment plan will either be weekly, semi-monthly, or monthly. Get an idea of what your monthly payment will be using our Auto Loan Calculator.

Often, your BHPH dealer will be able to match up your pay dates with your job to make it as easy as possible to make payments on time and build up your credit score.

If you have no credit, bad credit, or are in post-bankruptcy, getting loan approval can be difficult. While annual percentage rates may depend on your credit score, Auto Simple accepts all credit situations including bad credit and no credit. This can be a great way to build up your credit at the same time.

Don’t believe people who say you’ll be paying 30% interest or the maximum allowed by law. Many BHPH lots offer interest rates in the range of 15% to 20%. Auto Simple offers interest rates as low as 14.9% to qualified buyers.*

Get pre-approved for financing by completing our secure online credit application.

Transaction specifics will be unique to you so make sure you review all the paperwork and finance information before you sign anything.

48-Hour Return Policy

When you buy from a private seller, you give up the chance to return the vehicle if you aren’t satisfied (along with a host of other buyer securities). When you buy a car from a BHPH car lot on the other hand, you are given a short return period to drive and test your purchase.

At Auto Simple, and at many other BHPH lots, a full 48-hour return period comes with every vehicle purchase. Make sure you go over this information with your dealer before signing any papers. No-Return policies raise red flags.

48 hours should give you enough time to drive your new vehicle through a variety of road conditions and even compare it with other cars and deals. There is absolutely no obligation to accept the offer if you are within the 48-hour timeframe.

Trade-In Deals (Buy Here Sell Here)

Trading in a used car is an easy way to kill two birds with one stone. If you are looking to trade in an older vehicle for a newer one, Auto Simple offers top dollar for pre-owned cars, trucks, vans, and SUVs. Our appraisals are good for 7 days.*

By selling (or trading in) your old car at a BHPH dealership, you can save a lot of time and money. We don’t know about other BHPH lots, but at Auto Simple, we make it extremely easy (See: How to Sell a Used Car to a Dealership).

Just fill out this form and we’ll send you an estimated appraisal within 48 hours.*

Curious to know how much money you can save by trading in your gas guzzler for a more fuel efficient vehicle? Calculate your fuel savings with our Gas Savings Calculator.

Free CarFax Report

Another advantage of going with a BHPH dealership is access to free CarFax reports on all vehicles.

Certified Pre-Owned Vehicles and Thorough Inspections

A certified pre-owned car is one that has undergone a full inspection and any necessary repairs as specified by the automaker. CPO vehicles are often in “like-new” condition. They may cost more, but often come with additional warranties and roadside assistance (like our 6 Month/6000 Mile Powertrain Warranty), one of the main reasons why it’s a smart idea to buy from a BHPH dealership.

While we can’t speak for other dealerships, the in-house mechanics at Auto Simple put every single vehicle through a 180-point quality inspection. This is the largest inspection any of our mechanics have ever been exposed to. We make sure to fix everything from gaskets to transmissions and everything in between.

We are able to inspect, fix, and test all of the cars on our lot because we have all of our services on-site. We control the quality levels and meticulously recondition the vehicles to ensure we meet, and hopefully exceed, all of your expectations.

Warranties

Most used car dealerships offer warranties on used cars, such as Auto Simple‘s 6 Month/6,000 Mile Powertrain Warranty on All Certified Pre-Owned Vehicles. This comes in addition to any original manufacturer warranties.

Call and ask about warranty information beforehand and make sure you get everything in writing.

Quick and Easy Process

All BHPH vehicles are normally in a database that is connected to the DMV for fast and smooth transactions. BHPH dealers may also be able to work with you to clear any existing loans you may have taken out (this depends on location, lender, and other factors).

Auto Simple makes the car buying process easy. You can get started without even leaving your couch:

  1. Get Pre-Approved Online
  2. Search Online Inventory
  3. We Help You Find the Right Vehicle
  4. Drive It Using Our Private Track for Test Driving
  5. Buy with Confidence (See: Customer Confidence Program)

Although you may have to sign on a dotted line or two, all the paperwork is typically handled by the dealership. Most of our customers are able to drive away in their dream car the very same day.

Buy Here Pay Here Cons

Limited Inventory

Although BHPH lots carry a lot different makes and models, you are restricted to what they have available in their inventory. Shop online inventories and call the location before making the trip.

Higher Interest Rates

If you have good or excellent credit, a different lender will probably provide a lower interest rate than a BHPH financier.

But despite the unreasonably high interest rates you may have heard about BHPH lots, Auto Simple offers interest rates as low as 14.9% to qualified buyers.* Get pre-approved online and contact our financing department for more information.

Wherever you get your loan, make sure you take the information home and carefully look it over before you sign anything. Remember, this contract will potentially stay in effect for years. This isn’t an iTunes update—you want to make sure you know the exact terms and agreements.

We also recommend looking up the dealership online with the Better Business Bureau and any local consumer affairs offices. Check how long they have been in business and online testimonials. Basically, just do your research and you’ll have no problem finding a great car at an affordable price.

Hidden Fees

Not all dealerships are as upfront with you about the total costs involved in your transaction. Don’t assume they will tell you. Look over all of the paperwork carefully and check for:

  • administration and handling fees
  • the price matches the price you agreed to
  • inspection or detailing fees
  • delivery fees

Make sure you know what your payments will be be, how much the interest is, and when the payments end.

Additionally, your BHPH dealership may not report your payment history to the Credit Bureaus.

While most dealers will automatically submit your payment information to credit agencies (like Auto Simple), don’t assume this is being done. Ask the dealership what their policy is on credit reporting so you can start rebuilding your credit.

Conclusion:

Buy Here Pay Here dealerships offer a wide selection of certified pre-owned vehicles and specialize in providing auto loans to people with negative credit. If you need a quality vehicle and need to build up your credit, you can kill two birds with one stone at a BHPH dealership.

Individual perks, however, vary from dealership to dealership. Make sure you do your homework first. Below you will find some of our competitive offerings.

Auto Simple PERKS

https://youtu.be/BzJ9717ps1Y

Most of the “buy here pay here” advantages listed above can be found at any BHPH dealership. There are, however, many benefits we offer on top of the aforementioned “pros.” If you do end up choosing to buy or sell a used vehicle at a Buy Here Pay Here dealership, we hope you choose one of our locations in Tennessee or our brand-new lot in Dalton, VA.

Here are some of the specific perks we offer to all of our customers:

  • Free CarFax for All Vehicles
  • 6 Month / 6000 Mile Powertrain Warranty
  • Low Down Payments
  • Large Inventory of Certified Pre-Owned Vehicles
  • Thorough 180-Point Quality Inspection
  • Preferred Customer Program
  • Meticulously Reconditioned Vehicles
  • Hassle-Free Financing
  • FREE Conventional Oil Changes Every 90 Days*
  • Short-Term Financing
  • Low-Mileage Vehicles
  • Fast Credit Approval
  • Weekly, Bi-weekly, and Monthly Payments

We take great pride in taking control over the entire buying, selling, inspection, and testing process. All of our vehicles go through a rigorous 180-point quality inspection.

We offer affordable prices and low down payments. Many of our customers drive away in their dream car for as low as $499 down.

Free Oil Changes

Simply sign up for recurring payments from your checking account and get FREE oil changes every 90 days for as long as you are paying off your loan.*

$200 Referral Program

When you refer a friend who purchases a vehicle from Auto Simple, you will earn a $200 credit on your account.

Tax Refund Special

https://www.youtube.com/watch?v=rX4HHCZC2wY

If you bring in your estimated tax refund, you can sign and drive away with your new car and we may defer your down payment.

Our tax refund special makes it easy for you to Sign & Drive. Stop on by one of our locations and say “Hi.” Read our testimonials to get an idea of how we treat our customers.

If you have any questions, don’t hesitate to speak with one of our Online Specialists or give us a call:

Chattanooga, TN – (423) 551-3600

Cleveland, TN – (423) 476-4600

Dayton, TN – (423) 775-4600

Dalton, GA – (423) 775-4600

Follow us on social media for more useful information on buying, selling, and maintaining used cars: Facebook, Twitter, Youtube, and Google+.

a salesman talking to a couple at a dealership

What is a “Certified” Pre-Owned Vehicle?

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Posted in Car Buying

When something is certified, you are more likely to trust the quality of the product. But do most car hunters actually know what it means for a car to be “Certified”?

When it’s time for a big purchase, such as a new vehicle, it’s important to have all the information you can get. That way, you can make an informed and budget-conscious decision about what works best for you. When it comes down to driving off the lot, will your decision be to go with new, used, or certified pre-owned?

Although “new” and “used” are the two largest car categories, there is a third, in-between category that offers much of the positive attributes of both—certified pre-owned (CPO). If you’re looking for a good alternative to new car prices, CPO is the way to go.

New Cars, Used Cars & In-Between

New cars come straight from the manufacturer and come with a plump warranty and price tag. They will also lose much of their value right off the lot and further depreciate in the coming years. According to CarFax, “a new car will lose 60 percent of its total value over the first five years of its life.” You may want that new car smell without the new car lease.

Used cars have always seemed like a riskier bet for car buyers, especially if they aren’t purchased at a dealership, but through a site such as Craigslist or a private seller. In this case, it’s not guaranteed that the vehicle will come with a detailed history of whereabouts and treatment. There is also no warranty attached to the purchase.

This is why used cars should always be bought through a professional and qualified dealer, such as Auto Simple. You never want to find out you’ve bought a lemon after it’s too late to drive back!

If the idea of going new or used doesn’t seem like enough of an option for you, the third category that is being focused on today is known as Certified Pre-Owned. With CPO cars, you get the best of both worlds.

What does Certified Pre-Owned mean?

Certified Pre-Owned – A certified pre-owned car is one that has undergone a full inspection and any necessary repairs as specified by the automaker. CPO vehicles are often in “like-new” condition. They may cost more, but often come with additional warranties and roadside assistance, one of the main reasons why it’s a smart idea to buy from a dealership.

Sometimes a certified pre-owned vehicle is called a “re-conditioned used car” as it is of a guaranteed high quality. They are not brand new, but not yet a decade old, either. CPO vehicles are usually between 2 years old and 8 years old.

You’ll be able to get that 2012 Ford Focus without the depreciation worries of a new vehicle or the functionality worries of a used one. Due to their like-new condition and dealership warranty, CPO purchases have a lot of positive benefits, most obviously, peace of mind.

If someone is offering a certified or re-conditioned used car, make sure you get all documentation on paper. Review the information carefully.

Perks of Certified Pre-Owned Vehicles

Purchasing a CPO is a win-win in the automotive world:

  • Between 2-8 years old
  • Have age and mileage limits, ensuring their “like-new” condition
  • In good working condition and certified to have passed strict safety inspections
  • Sold through licensed car dealers
  • Inspected according to manufacturer’s standards
  • Sometimes comes with manufacturer-backed warranty that extends the length of the new-car coverage already in place
  • Buying a 2-3 year old CPO saves a buyer around 25% versus a brand new vehicle of the exact same make/model
  • CPO cars often offer lease options unlike used cars, leading to a better car at a lower monthly rate
  • You cannot lie about the condition of a CPO; you can trust the dealer
  • Comes with a free vehicle-history report and CPO checklist specific to each manufacturer and their varying standards (Auto Simple has a 180-point inspection to go over every bolt, wire, curve and crevice.)
  • Coverage varies by automaker; you’ll probably find something around 6 years/60,000 miles of coverage from the CPO’s original sell date
  • Look into the details if you’re offered a CPO program that divides your warranty into “powertrain” and “limited” warranties
  • Embraces the in-between perks of being a “new used car”

Learn how to buy a used car

Things to consider when looking into a vehicle purchase:

  • Research what kind of car you want and then search their inventory.
  • If you want to trade-in or finance, research the options available to you.
  • Get a vehicle repair and maintenance history report.
  • Get a car inspection and documentation.

Dealership Pros

Here are some reasons why you should stick with the professionals:

  • Consumer Protection – A used car dealership that does not abide by state and federal rules and regulations won’t be in business for long. Buying a used car from a dealership gives you much more consumer protection and peace of mind.
  • Warranties – Most used car dealerships offer warranties on used cars, such as Auto Simple‘s 6 Month/6,000 Mile Powertrain Warranty on All Certified Pre-Owned Vehicles. This is in addition to any original manufacturer warranties.
  • Trade-In – Trading in a used car is an easy way to kill two birds with one stone (get your trade-in estimate from Auto Simple).
  • Financing Options – Most dealerships offer financing options, which is great if you are looking for the best loan offer. Still, cash is the best way to pay the lowest price.
  • No Paperwork – Although you may have to sign on a dotted line or two, all the paperwork is typically handled by the dealership.

Buying from a dealership gives you peace of mind, but always read everything you sign. Some cars may have manufacturer warranties, some may not. Make sure you know what you are buying, if there is a return period, and other important considerations.

Certified Pre-Owned Vehicles at Auto Simple

https://www.youtube.com/watch?v=Cy-2pWefRS0

All the vehicles on our lot undergo a thorough 180-Point Quality Inspection and test drive, which is performed by one of our highly trained technicians who take deep pride in their work.

We control the quality and have our own test track to put the car through all driving conditions. See why our Customer Confidence Program is one of the best in the nation.

Auto Simple carries a large selection of hand-picked, Certified Pre-Owned Vehicles, all of which come with a 6 month/6,000-mile Powertrain Warranty.!

With locations in Cleveland, Chattanooga, Dayton, and a new store in Dalton, GA, we make it easy to walk away with your dream car.

Come to our GRAND OPENING Sales Event at our new Dalton, GA location!
Test drive any vehicle for your chance to win a YETI cooler!
Doors open from 9am-7pm on Friday (10/9) and 9am-4pm on Saturday (10/10)

Get the best deal on your next car for Christmas!

If you have any questions, don’t hesitate to speak with one of our Online Specialists or give us a call:

Chattanooga, TN – (423) 551-3600

Cleveland, TN – (423) 476-4600

Dayton, TN – (423) 775-4600

Dalton, GA – (423) 775-4600

Follow us on social media for more useful information on buying, selling, and maintaining cars: Facebook, Twitter, Youtube, and Google+.

*Preferred Customer program and free conventional oil changes every ninety (90) days are contingent upon the customer electing to make recurring payments to via ACH or debit card. Additionally, to continue in the Preferred Customer program and receive free oil changes, the customer’s loan must remain in good standing, and the customer may not cancel the recurring payment election. See store for further details. Other restrictions may apply.

a smiling man standing next to a car

Used Car Buyer’s Guide | How to Buy a Pre-Owned Vehicle

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Posted in Car Buying

Car buying is like the start of any new relationship. It will require time, money, and effort. You have to know yourself and what you want, and use a healthy mixture of logic and emotion. The results can be either wonderful or horrifying.

But before committing, you want to make sure you have done all due diligence. There is a lot of work and preparation to be done for the first time used car buyer.

Used Car Buyer’s Guide

How to Buy a Used Car

1. Research

Before inspecting and buying a used car:

  • Set a budget and narrow your used car search down to a couple specific vehicles.
  • Look up the make/model of your desired vehicle for any recalls, consumer complaints, or safety-related defects.
  • If your research turns up any common issues with the car, keep this in mind during the inspection process.

Once you’ve chosen a car that meets your needs and price range, you will need to get a vehicle history report.

Get a CarFax vehicle history report to learn important information about the vehicle you are considering.

All you need is the 17-character vehicle identification number (VIN).

All Auto Simple pre-owned vehicles go through a rigorous 180-point inspection and come with a free CarFax report.

If the CarFax report comes back clean, with no flood damage history, accident indicators, or other red flags, it’s time to inspect the vehicle.

Whether or not you get the car inspected by a third-party mechanic, it’s a good idea to know first-hand the used car’s condition. Although a CarFax vehicle history report provides you with a lot of useful information, you will want to conduct a thorough inspection of the vehicle yourself.

2. Inspection

Minor damage and scratches are acceptable, but you’ll have to decide if the price reflects that. If the car is really cheap, you may expect some damage to the interior and/or exterior.

Minor accidents shouldn’t be a problem if a proper repair has been made. But be sure to make note of any defects you find as it will help you in the negotiation process.

Larger damage is more serious, such as big crashes. This is why you will want to see a full car history report. Although new welds, paints, and other signs can indicate a major crash, you may not be able to tell what the car has been through during its life.

Exterior

Walk around the outside of the car and look for any signs of damage.

  • Body – Scratches, dents, and rust indicate how the car was treated by its previous owner. If body parts are not lining up properly or there are paint discrepancies, this is a sign that the vehicle was involved in an accident. You can also use a paint meter to ensure the vehicle history report is accurate.
  • Doors, Hood and Trunk – Test the doors, hood, trunk and any other moving parts. They should be easy to open and close. Make sure they all close fully and create a seal.
  • Tires – Examine the tires for wear and tear. Do they look nice and smooth? Are they all the same brand? How much tread is there? Do they have cracks or look dried out?  If you notice uneven wear on the tires, it may require an alignment. Ask the seller about the tires and if they have been regularly rotated. If you need tire replacements or alignments, use this during negotiations.
  • Lights – Test all of the lights including reverse lights, turn signals, and high beams. Inspect the housing for cracks or other moisture issues.
  • Underneath the Car – Get underneath the car if you can and look for any damage or rust.

Interior

Inspect the car’s interior and see if it has been well maintained.

  • Test All Electronics – Make sure everything works. Let the seller explain all the features and how to use them.
  • Check the Odometer – Compare any damage with the car’s mileage to see if it looks like normal wear and tear.
  • Check the Gaskets – If they are worn or damaged, you could get leaks.
  • Engine – The most important part of the car. Pop the hood and see if everything looks well maintained. Pay attention to any signs of rust, which can quickly spread.
  • Stripped Bolts – Look for marks on nuts and bolts for signs of repair work. If fenders have marks on the bolt, that means it has been repaired at some point.
  • Hoses – Look and feel around the hoses for cracks, holes, and fraying.
  • VIN Number – Look for the VIN or chassis number on the vehicle. It is normally located on the dashboard, driver’s side door, front engine block, or front end of frame. Make sure the number matches the numbers on the papers. If the chassis number has been filed off, don’t buy the car. It’s probably stolen.
  • Check Liquids – Check oil, transmission, power steering, and brake fluids. If the transmission fluid is brown or smells “burnt,” it could be on its last legs. Make sure the fluids are at proper levels. Look for oil leaks. If there is a leak, it’s important to investigate further.

https://www.youtube.com/watch?v=ejnTTpoJxFM

3. The Test Drive 

This may be the best moment of the whole car buying process—driving a car that will potentially be “your baby.” It’s like a first date. And like any first date, first impressions are paramount.

  • Choose a cold day. Pay attention to how the engine sounds when you start the car and let it idle. Turn on the heat and see how warm and fast it is. Once the car warms up, quickly shift over the the A/C.
  • Pre-plan your route. Take the car on smooth and bumpy roads, hills and flat land, city streets and the highway.
  • Test all electronics. This includes windshield wipers, lights, radio, heating and air conditioning.
  • Test shifting gears. Is there smooth shifting? Does the steering wheel vibrate? If you feel odd vibrations or hear clunking or grinding noises, this could indicate a bad transmission. Feel the car at all the different gear settings, but there’s no need to take it to its top speed.
  • Check the brakes. This is not the time to be gentle. Get the car up to about 40-60 mph and then brake hard. Make sure it stops straight and the steering wheel isn’t shaking. This could indicate warper rotors, worn brake pads, or a loose brake caliper. A good healthy brake system will stop straight.
  • Check tire alignment. Make sure your steering wheel is completely straight and then take your hands off for a few seconds to see if the car veers to the right or left. If the tires are aligned, the car should continue in a straight line.
  • Listen carefully. Are there metallic sounds? If you hear clicking, rattling, clunking, and any other unusual sounds, further investigation is needed. Odd sounds and vibrations foretell repairs ahead.

For more information on inspecting a used car, read this Consumer Reports guide.

General Car Buying Tips

Increase your chances for success with a few extra precautions:

  • Never go alone. Always have someone accompany you. They will help you think through your options in a rational way. When you choose the person who will be going with you, try to pick someone with intelligence and experience, someone with a level head on their shoulders. They will help you ask critical questions.
  • Control your emotions. When looking for a new used car, try not to pay too much attention to aesthetics like colors and body work. If you feel yourself falling in love with a car, take a step back and reassess your emotions. To get the best car for your buck, use reason, not emotion. Pick a neutral color if you are thinking about reselling the car.
  • Make sure there are at least two keys. If one is missing consider the cost of getting a backup. It depends on the key, but newer keys with chips in them will set you back a couple hundred dollars. If it’s just a normal key, it won’t cost you that much.
  • Get a CarFax Report! CarFax is a comprehensive and trustworthy report on the vehicle’s history. With more than 93,000 data sources at their disposal, CarFax reports may include:
    • Title information, including salvaged or junked titles
    • Flood damage history
    • Total loss accident history
    • Odometer readings
    • Lemon history
    • Number of owners
    • Accident indicators, such as airbag deployments
    • State emissions inspection results
    • Service records
    • Vehicle use (taxi, rental, lease, etc.)

To ease your worries about purchasing a preowned vehicle, all Auto Simple cars go through a 180-point inspection and come with a free CarFax report. We do our best to bring the vehicle back to like-new conditions, including touching up paint and removing dents.

Plus, we offer a 6 Month/6,000 Mile Powertrain Warranty on all of our Certified Pre-Owned Vehicles. If for any reason you are unsatisfied with your purchase, you can return the vehicle within 48 hours—no questions asked.

Finalizing the Purchase

If you are buying from a dealership, the payment and purchase should be very easy. After all questions are answered and the paperwork is signed, you will receive the keys and copies of all the documents. It’s that easy.

In fact, you can leave the Auto Simple lot with a new pre-owned vehicle for as low as $500 Down!

https://www.youtube.com/watch?v=2Fjn02cArgw

Auto Simple wants to find you a car you love at a price you can afford. We carry a large selection of hand-picked, Certified Pre-Owned Vehicles, all of which come with a free CarFax report and a 6 month/6,000-mile powertrain warranty. We also own a private track for test driving!

With locations in Cleveland, Chattanooga, Dayton, and a new store in Dalton, GA, we make it easy to walk away with your dream car.

If you have any questions, don’t hesitate to speak with one of our Online Specialists or give us a call:

Chattanooga, TN – (423) 551-3600

Cleveland, TN – (423) 476-4600

Dayton, TN – (423) 775-4600

Dalton, GA – (706) 217-CARS (2277)

Follow us on social media for more useful information on buying, selling, and maintaining cars: Facebook, Twitter, Youtube, and Google+.

*Preferred Customer program and free conventional oil changes every ninety (90) days are contingent upon the customer electing to make recurring payments to via ACH or debit card. Additionally, to continue in the Preferred Customer program and receive free oil changes, the customer’s loan must remain in good standing, and the customer may not cancel the recurring payment election. See store for further details. Other restrictions may apply.