About Buy Here Pay Here Car Lots
August 29th, 2009 . by adminHave you ever wondered how buy here pay here car lots work?
It’s very simple really.
They buy cars at auctions for cheap. New car trade in’s that aren’t wanted by the dealerships are sold at auction because they either have too many miles or they aren’t in sound mechanical condition.
Prime lenders won’t lend money for or finance cars that have over 75,000 miles.
That’s why new car dealerships sell them at auction.
They are then bought cheap by buy here pay here dealers and are sold to people for two and three times what is paid for them.
Usually the down payment that you make on a car at one of these types of car lots is used to cover the cost of the car, then the payments that you make are profit for the dealer.
