How Do You Get a Lower Price for a Vehicle Offered for Sale at a Buy Here Pay Here Car Dealership? 

Negotiating a lower price on a vehicle at a buy here pay here can be more difficult than when buying a car from a typical car dealership. Most buy here pay here inventory is purchased at auction or are higher mileage vehicles local new car dealerships have sold to them wholesale. Buy here pay here's typically are at an advantage when pricing these cars for sale because the consumers buying the vehicles usually can't get approved elsewhere and are limited in their options. To get a lower price at a buy here pay here, you have to understand the negotiation process these dealerships usually employ.

Typically, a buy here pay here looks at a you as someone in a desperate situation. They're approached by people that have been turned down by regular car dealerships around town, have very bad credit histories and don't think they can get approved anywhere else. Buy here pay here's are used to working on payment and not on price. Most of their buyers are "payment buyers". This puts the consumer at a disadvantage because the long term financing used by many of these car lots gives the consumer a budget payment with a very long installment note.

For example, a vehicle selling for $7,000.00 can have a payment as low as, $200.00 a month, offering a budget payment amount for a buyer. If financed for 60 months, the total of payments is $12,000.00. As these types of car lots usually price their vehicles at a high retail price to begin with, the consumer can drive off the car lot owing $12,000.00 on a vehicle they couldn't sell in the local paper for more than $5500.00, leaving the consumer with an initial negative equity in this scenario of $6500.00. So when people buy based on payments as is typical when buying a car from a buy here pay here, they're at a disadvantage.

So when you negotiate a car purchase at a buy here pay here, keep your payment budget in mind, but pay special attention to the number of payments. When a dealer quotes a payment amount, always ask for the number of payments. The difference between 48 and 60 months as in the example above, can mean the difference of $2400.00. So the number of payments is just as if not more important than, the amount of your monthly payment. Don't agree to a payment amount and let the dealer try to sneak another 12 months on your loan. A loan calculator can be useful.

Negotiate Price First

Buy here pay here dealers are going to want to keep your attention on the payment amount, not the price, for the reasons explained above - more profit. Focus your attention on the price before turning to considering payments. When negotiating price, offer an amount much lower for the vehicle than you expect the fair price to be. This can help find out what the true best price is that the dealer will sell the vehicle for. If the dealer won't discount the vehicle, find another dealership and walk away. Just because you have credit problems doesn't mean you should get yourself in the position of having more debt than you need to have. 

Don't Buy on the First Visit

Don't buy a vehicle on the first visit to a buy here pay here. Being willing to walk away from an offer with the willingness to shop elsewhere gives you a negotiating advantage most people don't have the self-discipline to do when they're excited about being able to get approved. Remember, some bad credit problems are the result of making decisions about credit too quickly. Here's your chance to take your time about buying a vehicle that will hopefully give you the opportunity to have reliable transportation until your credit is repaired enough to get a better car loan.

Think It Over and Get an Inspection

Always think things over and when the price, down payment and finance terms are agreeable - take the vehicle to a local mechanic. Having the vehicle inspected by a local mechanic whose opinion you trust can help to make sure you're not going to have major repairs needed in the near future. Most vehicles sold at in-house financing car dealerships aren't eligible for an extended warranty, so choose wisely and get a mechanical inspection before making any purchase.