Index
Elkhart: 574-264-1001 
Goshen: 574-971-8484 
Contact Information

What Is The Difference Between Financing And Buy Here, Pay Here?


Image

What Is The Difference Between Financing And Buy Here, Pay Here?

Are you struggling with low credit? Or perhaps you just want an easier car shopping process. If this is you, then dealerships that provide buy here, pay here near you are one of the best solutions. At this point, however, you may be wondering what buy here, pay here means or how it differs from normal lending. Hence, to help answer your questions, we at USA-1ís buy here, pay here near Warsaw, Indiana, have compiled a list below detailing the differences between buy, here pay here and normal auto financing.

Buy Here, Pay Here:

Taking advantage of dealerships offering buy here, pay here near you is an excellent decision, especially if you are struggling with low credit. Buy here, pay here is also a very streamlined financing process, allowing you to handle everything on-site with in-house dealership lending.

1. Determining Loan Eligibility

Whether you want to buy here, pay here near Warsaw, Indiana, or anywhere else, you should first understand how eligibility is determined for buy here pay here loans. Unlike typical loans on used cars near you, buy here, pay here loans utilize factors other than credit to determine eligibility, allowing them to accommodate a larger group of buyers. If you look at the list below, you can see the factors used to determine buy here, pay here loan eligibility:

  • Income-to-debt ratio
  • Employment status
  • Living situation

2. Caters To Buyers With Low Or No Credit

Suppose you are looking for a used SUV near you with low credit, but you havenít had any luck with typical lenders since credit is the primary factor for determining loan eligibility. Fortunately, bad credit dealerships, such as USA-1ís buy here, pay here near Warsaw, Indiana, provide a great solution for anyone searching for a car with low credit. As mentioned above, these dealers offering buy here, pay here near you are able to cater to buyers with bad credit because they use factors other than credit in qualifying buyers for auto loans.

3. Down Payment/Trade-In

Down payments and trade-ins are typically encouraged at buy here, pay here dealerships; however, they are never usually required. However, you should still prepare for a down payment as some buy here, pay here dealerships may still require a small down payment, which will be a percentage of the value of your desired used car for sale near you.

Normal Financing:

Unlike buy here, pay here financing, there are a lot more steps and requirements with normal financing, making it difficult for anyone struggling financially or anyone with poor credit.

1. Determining Loan Eligibility

As opposed to buy here, pay here financing, normal financing uses credit scores to determine loan eligibility. Your eligibility also decides the amount of interest you will pay for an auto loan. Thus, the higher the credit score, the less you will pay in interest on a car loan. To browse the qualifying credit tiers and scores that are utilized in normal financing, see the following list:

  • Superprime: 781-850
  • Prime: 661-780
  • Nonprime: 601-660
  • Subprime: 501-600
  • Deeper Subprime: 300-500

2. Variety Of Lending Options

Compared to buy here, pay here lending, there is a lot more variety with normal lending, with several different types of lenders from which you can choose. Because of this variety, you may still be able to find lending for low credit; however, buy here, pay here lending is much more straightforward and reliable. If you look at the list below, you can see the most common auto lending options:

  • Captive Financing: Manufacturer-sponsored lending
  • Online Lending: Wide range of lenders
  • Bank financing: Financial institution lending
  • Credit Union financing: Lending with lower interest and savings provided by credit unions

3. Down Payment/Trade-In

Perhaps youíve found your dream used truck for sale, but it is just over budget. Luckily, a down payment or trade-in can help to reduce the cost of the truck and bring it within your budget. In fact, in contrast to buy here, pay here, most normal financing companies require a down payment, which is usually a minimum of twenty percent of the vehicleís value. Along with this, you should also watch out for trade-in incentives that can help you to get more money for a trade-in.

Exterior: 
White
Interior: 
Ebony 
Mileage:
69,282
Engine:
6 Cylinder, 3.5L
Model #: 
1WB19
VIN:
2G1WB58K281197186
Stock #:
197186
Internet Price:  
$10,900
an On-Star System so you can get help when you need it, Keyless Entry, and Voice Command Features. an included Anti-Theft System to deter car thieves and vandals, Multi-Information Display, and Steering Wheel Cruise Controls. an Auxiliary Audio Input, an MP3 Player / Dock, and an Auxiliary Power...   Read More
Exterior: 
Silver
Interior: 
Jet Black 
Mileage:
32,703
Engine:
4cyl, 1.5L, 160.0hp
Model #: 
1ZD69
VIN:
1G1ZD5ST2JF197213
Stock #:
197213
Internet Price:  
$17,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 197213 a 2018 Chevrolet Malibu 4dr Sdn LT w/1LT FWD is ready to go with only 32,703 Miles, along with a Silver Ice Metallic Exterior and a Jet Black Fabric Interior.Some of the Malibu more desirable features include Voice...   Read More
Exterior: 
Gray
Interior: 
Sport Interior Leather
Mileage:
41,867
Engine:
4cyl, 2.5L, 179.0hp
Model #: 
13118
VIN:
1N4AL3AP2JC284441
Stock #:
284441
Internet Price:  
$17,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 284441 a 2018 Nissan Altima 2.5 SR Midnight Edt. Sedan FWD is ready to go with only 41,867 Miles, along with a Gun Metallic Exterior and a Sport Interior Leather Interior.Some of the Altima more desirable features include...   Read More
Exterior: 
Gold
Interior: 
Dune 
Mileage:
56,917
Engine:
6cyl, 3.5L, 288.0hp
Model #: 
P2D
VIN:
1FAHP2D81HG112745
Stock #:
112745
Internet Price:  
$17,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 112745 a 2017 Ford Taurus SE FWD is ready to go with only 56,917 Miles, along with a White Gold Metallic Exterior and a Dune Fabric Interior.Some of the Taurus more desirable features include Satellite Radio, Power Windows,...   Read More
Exterior: 
Red
Interior: 
Jet Black 
Mileage:
15,846
Engine:
4cyl, 1.5L, 160.0hp
Model #: 
1ZD69
VIN:
1G1ZD5ST0JF258137
Stock #:
258137
Internet Price:  
$17,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 258137 a 2018 Chevrolet Malibu 4dr Sdn LT w/1LT FWD is ready to go with only 15,846 Miles, along with a Cajun Red Tintcoat Exterior and a Jet Black Fabric Interior.Some of the Malibu more desirable features include Accident...   Read More
Exterior: 
Gray
Interior: 
Dark Atmosphere/ Medium Ash Gr 
Mileage:
27,077
Engine:
4cyl, 1.5L, 160.0hp
Model #: 
1ZC69
VIN:
1G1ZB5STXKF130298
Stock #:
130298
Internet Price:  
$18,900
USA-1 Auto Sales Elkhart Is a Premiere Buy Here Pay Here Dealership! Let's take a look at Stock# 130298 a 2019 Chevrolet Malibu 4dr Sdn LS w/1LS FWD is ready to go with only 27,077 Miles along with a Shadow Gray Metallic Exterior and a Dark Atmosphere/ Medium Ash Gr Fabric Interior.Some of the...   Read More
Exterior: 
Blue
Interior: 
Sport 
Mileage:
73,229
Engine:
4cyl, 2.5L, 182.0hp
Model #: 
13319
VIN:
1N4BL4CV2KC225834
Stock #:
225834
Internet Price:  
$19,900
USA-1 Auto Sales Elkhart Is a Premiere Buy Here Pay Here Dealership! Let's take a look at Stock# 225834 a 2019 Nissan Altima 2.5 SR is ready to go with only 73,229 Miles along with a Deep Blue Pearl Exterior and a Sport Synthetic Leather Interior.Some of the Altima more desirable features include...   Read More
Exterior: 
Black
Interior: 
Black Leather
Mileage:
7,107
Engine:
4cyl, 2.0L, 147.0hp
Cab Type: 
Hatchback
Model #: 
F1302F45
VIN:
KMHTG6AF1K4011918
Stock #:
011918
Internet Price:  
$19,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 011918 a 2019 Hyundai Veloster 2.0 is ready to go with only 7,107 Miles, along with a Phantom Black Exterior and a Black Leather Interior.Some of the Veloster more desirable features include Remote Engine Start, Electronic...   Read More
Exterior: 
Black
Interior: 
Ebony Leather
Mileage:
40,689
Engine:
4cyl, 2.3L, 310.0hp
Model #: 
P8T
VIN:
1FA6P8TH6H5234749
Stock #:
474917
Internet Price:  
$22,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 474917 a 2017 Ford Mustang EcoBoost is ready to go with only 40,689 Miles, along with a Shadow Black Exterior and a Ebony Leather Interior.Some of the Mustang more desirable features include * REMAINING FACTORY WARRANTY *,...   Read More
Exterior: 
Black
Interior: 
Ebony 
Mileage:
29,478
Engine:
4cyl, 2.0L, 245.0hp
Model #: 
P0T
VIN:
3FA6P0T93KR271465
Stock #:
271465
Internet Price:  
$22,900
USA-1 Auto Sales Elkhart Is a Premiere Buy Here Pay Here Dealership! Let's take a look at Stock# 271465 a 2019 Ford Fusion SE AWD is ready to go with only 29,478 Miles along with a Agate Black Exterior and a Ebony Fabric Interior.Some of the Fusion more desirable features include Power...   Read More
Exterior: 
White
Interior: 
Jet Black/Dark Titanium Leather
Mileage:
35,742
Engine:
6cyl, 3.6L, hp
Model #: 
1GY69
VIN:
2G11Z5S33K9138938
Stock #:
138938
Internet Price:  
$22,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 138938 a 2019 Chevrolet Impala 4dr Sdn LT w/1LT FWD is ready to go with only 35,742 Miles, along with a Summit White Exterior and a Jet Black/dark Titanium Leather Interior.Some of the Impala more desirable features include...   Read More
Exterior: 
Silver
Interior: 
Charcoal Black Leather
Mileage:
35,584
Engine:
6cyl, 3.5L, 288.0hp
Model #: 
P2J
VIN:
1FAHP2J81KG116046
Stock #:
116046
Internet Price:  
$24,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 116046 a 2019 Ford Taurus Limited AWD is ready to go with only 35,584 Miles, along with a Ingot Silver Metallic Exterior and a Charcoal Black Leather Interior.Some of the Taurus more desirable features include Accident...   Read More
Exterior: 
Silver
Interior: 
Jet Black 
Mileage:
53,587
Engine:
6cyl, 3.6L, 335.0hp
Model #: 
1AG37
VIN:
1G1FB1RS5H0207809
Stock #:
207809
Internet Price:  
$24,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 207809 a 2017 Chevrolet Camaro 2dr Cpe 1LT RWD is ready to go with only 53,587 Miles, along with a Silver Ice Metallic Exterior and a Jet Black Fabric Interior.Some of the Camaro more desirable features include Dual Power...   Read More
Exterior: 
Gray
Interior: 
Black 
Mileage:
45,971
Engine:
6cyl, 3.6L, 292.0hp
Model #: 
LDDM48
VIN:
2C3CDXBG9KH553592
Stock #:
553592
Internet Price:  
$26,900
USA-1 Auto Sales Elkhart Is a Premiere Buy Here Pay Here Dealership! Let's take a look at Stock# 553592 a 2019 Dodge Charger SXT is ready to go with only 45,971 Miles along with a Destroyer Gray Clearcoat Exterior and a Black Fabric Interior.Some of the Charger more desirable features include Rear...   Read More
Exterior: 
Black
Interior: 
Dark Ceramic 
Mileage:
16,722
Engine:
4cyl, 2.3L, 310.0hp
Model #: 
P8T
VIN:
1FA6P8THXK5167421
Stock #:
167421
Internet Price:  
$26,900
In Need of Dealer Direct Financing in Elkhart ? Then Stock# 167421 a 2019 Ford Mustang EcoBoost is ready to go with only 16,722 Miles, along with a Shadow Black Exterior and a Dark Ceramic Fabric Interior.Some of the Mustang more desirable features include Paddle Shifters, Satellite Radio, Keyless...   Read More
Exterior: 
Red
Interior: 
Jet Black 
Mileage:
47,031
Engine:
4cyl, 2.0L, 275.0hp
Model #: 
1AG37
VIN:
1G1FB1RXXJ0179250
Stock #:
179250
Internet Price:  
$26,900
USA-1 Auto Sales Elkhart Is a Premiere Buy Here Pay Here Dealership! Let's take a look at Stock# 179250 a 2018 Chevrolet Camaro 1LT is ready to go with only 47,031 Miles along with a Red Hot Exterior and a Jet Black Fabric Interior.Some of the Camaro more desirable features include Power Windows,...   Read More
Exterior: 
White
Interior: 
Black 
Mileage:
38,524
Engine:
6cyl, 3.6L, 292.0hp
Model #: 
LDDM48
VIN:
2C3CDXBG7KH505301
Stock #:
505301
Internet Price:  
$26,900
Looking for the Best Buy Here Pay Here Solution in Elkhart ? Then Stock# 505301 a 2019 Dodge Charger SXT RWD is ready to go with only 38,524 Miles, along with a White Knuckle Clearcoat Exterior and a Black Fabric Interior.Some of the Charger more desirable features include * LOW MILES *, Satellite...   Read More
Exterior: 
White
Interior: 
Jet Black 
Mileage:
35,510
Engine:
8cyl, 6.2L, 455.0hp
Cab Type: 
2dr Car
Model #: 
1AJ67
VIN:
1G1FF3D7XJ0139404
Stock #:
139404
Internet Price:  
$36,900
USA-1 Auto Sales Elkhart Is a Premiere Buy Here Pay Here Dealership! Let's take a look at Stock# 139404 a 2018 Chevrolet Camaro 2dr Conv 1SS RWD is ready to go with only 35,510 Miles along with a Summit White Exterior and a Jet Black Fabric Interior.Some of the Camaro more desirable features...   Read More
View ArticlesSave ThisPrint ThisTell A Friend