What does "buy here, pay here" financing mean?

What does "buy here, pay here" financing mean?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "balloon payment" mean?; What does "base value" mean"?; What does "buy here, pay here" financing mean? and more...

With regards to financing your car, a "buy here, pay here" dealer is one that has arranged to do all the financing there in-house. Quite often this is much more on the used car side than in the new car side. So, while this is an advantage in that you can do one-stop shopping if you will, the disadvantage is that there is usually a much higher interest rate than with a large finance company or a bank would be able to provide. So, while you will be approved finance for that loan, you'll probably be paying a much higher interest rate than you would at another dealership, bank or credit union.