Many people who have been denied car credit or turned down by a dealership for financing believe that they will only be able to get financing if they use a car lot that buys here, pay here. If you have poor credit, this is not the best option. Let’s look at the process of buying Buy Here Pay Here Virginia.

The sale price.

Car lots that buy here, pay here work by asking for more than regular car dealers to sell cars. They often sell cars that are not available from other car lots. New car dealers don’t have the ability to finance cars with more than 75,000 miles.

A dealership will typically send us a car to auction if they take in a vehicle that is more than 75,000 miles. These vehicles are often available for purchase at very low prices because there are no new car dealers that want to buy them. Buy here pay here car lot finance their cars themselves so there are no loan companies or lenders that can oversee the price.

These car lots allow people to pay lower prices for their cars than they would normally. A vehicle purchased at a buy-here-pay here lot will cost you more than a car bought at a regular dealership or private seller.

Finance Fees.

Each state has its own regulations and laws regarding the amount of interest a pawnshop or buy here pay here lot can charge. The interest rate cap in many states is 29%. You can expect to pay more than 20% in interest when you buy here, pay here cars. Many people don’t know that you can get financing even if your credit is very poor.


Based on my years of experience in the car industry, I can tell you that a buy here, pay your car lot approach will work. You will need to make a down payment equal to what the dealer paid for the car. The dealer will pay the largest part of the down payment. Next, you will pay interest and payments.