What’s the Difference Between Us and a Buy Here Pay Here? | Best Pre-owned Dealer Baltimore MD

What’s the Difference Between Us and a Buy Here Pay Here? | Best Pre-owned Dealer Baltimore MD


Hi, I’m Joel Bassam,
director of marketing for Easterns Automotive Group. And today I want to tell
you about the difference between a traditional dealership
and a “buy here, pay here” lot. [MUSIC PLAYING] At its most simple,
the difference between a traditional
dealership is that financing is
secured through a finance partner or bank, and at a
“buy here, pay here” lot, the financing is actually
done by the dealer itself. While the distinction may
not seem that extreme, there is a lot of
differences for the consumer. One of the first differences
at a “buy here, pay here” lot– they generally
don’t report to the three major credit bureaus. So making your on-time
payments may not actually increase your credit score. Another big difference is a lot
of “buy here, pay here” lots actually require weekly
or bimonthly payments that have to be made physically
at the dealership, which is a lot of trips to the
dealer for the consumer. “Buy here, pay here”
lots also traditionally have a much smaller
selection, and they also tend to tell a
customer what they can have as opposed to
allowing them to shop freely. Another thing to consider
is the quality of car. Many “buy here,
pay here” lots tend to carry older vehicles that
traditional lenders won’t finance over long terms. Every dealership is different,
and every consumer’s credit situation is unique to them. So you should always
consider all of these things when you’re picking the right
fit for you and your family. Thanks for checking out this
video of a quick overview of the difference between
a traditional dealership and a “buy here, pay here” lot. You can see more
content just like this by going to our website or
subscribing to our YouTube channel.

About the Author: Michael Flood

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