Free Articles  >>  Business And Finance >>  Page 494  >> 

Are The Buy Here Pay Here Car Dealers The Same As Big Dealerships


It's almost impossible to get anywhere these days without a car. Commuting for work, visiting distant relatives, going to school and getting the kids where they need to go are all very valid reasons for owning a car. Consumers these days are even turning to their cars to finance the cost of living. Auto and car title loans are overwhelmingly popular as the cost of living goes up and those who are simply trying to make it from paycheck to paycheck look for ways to support their households.

According to the Annie E. Casey Foundation created by the founder of UPS, Jim Casey, 1 in every 4 U.S. families does not own or have access to a car. Without access to mass transit either, those people are left with no form of transportation; no way to get work.

Studies have shown that low-income individuals and families who have access to a car are more likely to work, have an increased income, get off public assistance, have better access to healthcare and be involved in community activities.

The inability for low-income individuals and families to buy a car from a traditional car dealer has driven them into the arms of "buy here pay here" car dealers. These dealers are often times known for selling cars at outrageous prices with stiff markups and unreasonably high interest rates.

A large portion of people who come to these dealers to buy a car eventually default on their loan payments and inevitably get their car repossessed. The car dealer then resells the car with the same unreasonable loan terms. Some cars are resold several times over as a result of being repeatedly repossessed.

Ken Shilson, founder of the National Alliance of Buy Here Pay Here Dealers in Houston states "If we don't finance these people, they have no way to get to their job" and claims they are providing a service that no one else will. But if people are buying cars from these types of dealers, spending a large portion of their paycheck to make the payment, and eventually defaulting on their loan and having their car repossessed, how are these dealers helping?

When a person goes into buy a car at a "buy here pay here" dealer, not only do they need to make sure they understand their loan terms, they need to seriously consider whether or not they can afford the car and the payment that comes along with it. In a desperate attempt to have some form of transportation to get to work, and in so many words "survive", consumers are being duped because they have no other choice.

Taking out any kind of loan requires serious thought and some homework on the part of the borrower. As tough as it is to try and go through life without a car, it's even harder when you risk your savings and paycheck to buy a car that will eventually be taken back.

The same goes for car and auto title loans that are taken out based on the equity of a person's car or truck. These loans can come with a high price in the way of interest and fees. When taking out an auto title loan for whatever reason, the lender asks for the pink slip to the automobile. If the borrower defaults on their payments, the lender has the right to repossess the car. At the time it may seem like you can handle the payment, just like purchasing a car, but if you think you are making a desperate decision, think twice; it could end up costing you your car.

About Author Laura J Solomon :

Texas Auto Title Loan is a great option for those who need fast money. TATL is state regulated following all rules and regulations. Visit <a href="" target="_blank"></a> to find out more on title loans.

Article Source:
Article Url:

Article Added on Monday, May 5, 2014
Other Articles by Laura J Solomon

Don t Be Decieved By An Auto Dealer Or Auto Title Loan Lender
Buying a car is not always the most pleasant experience to go through. Haggling, paperwork, running numbers and signing on the dotted line can take hours. Understanding what your interest rate is, how much your payment will cost you every month, and knowing when you can celebrate your final payoff are sometimes unclear as we drive off the lot in our new set of wheels. Finding a dealer you can trust should be a priority when looking for a new car. Auto dealers can mislead you; no matter how...

Buying A Car Or Getting A Car Title Loan There s A Difference
Buying A Car Or Getting A Car Title Loan? There's A Difference Although the words may sound similar, a car loan is not the same as a car title loan. With the plethora of loans out there these days, it's important that consumers know the difference. Especially when looking online for a lender. When shopping for a loan, have your loan options in order. Financing any type of loan means doing your homework in advance in an effort to get a better loan. Annual interest rates (APR), payment...

Payday Loan Approval For Improving Your Credit Score
? While you may currently have a low credit score (FICO), it doesn't have to be that way forever. If you are working on raising your score and putting those past financial mistakes to rest, it will take dedication and discipline but eventually it will happen. While many people turn to credit cards or personal loans in times of financial emergencies, those forms of credit may not be an option with a low credit score. A fast cash payday loan may be an option though. With this type of short-term...

Payday Loans Would I Ever Be Denied
? Financial lenders come in a variety of forms: banks and credit unions, automobile dealerships, mortgage lenders, credit card companies, and payday loan lenders. Everywhere you look, you can find a lender for any and every type of financial transaction. Lenders use the internet, television, radio, newspaper and sign spinners to advertise their services and they advertise for people with all types of credit. Often times you hear advertisements that appeal to people with good credit. This can...

Payday Loans Don t Carry Special Offers Like Credit Cards
Getting a payday loan is pretty cut and dry: apply online or in-store, give the lender information about your job, monthly income and bank account, get approved and have your money in the bank the next business day. In unique cases, it may take a little longer but over all, it's the fastest and most convenient way to get cash in a hurry. Payday loan rates and fees are determined by the lender. The state the borrower lives in determines the max amount a lender can loan as well as the how much...

Do Payday Loans And Your Credit Score Have Anything In Common
? One of the best components of a payday loan is that you don't have to have a high credit score to borrow. In fact, you don't have to have any credit history. It sounds odd because all the other lenders- credit card companies, auto dealers, mortgage companies- look at your credit score and history to determine whether or not they want to loan to you. They consider how much debt you owe, how good or bad your payment history, and how much money you make in regards to how much credit you hold....

Can A Car Title Loan Lender Commit Identity Theft
? Identity theft is on the rise as mass consumerism and technology combined open the floodgates to a wealth of information being transmitted on a daily basis. Building a credit worthy reputation takes some consumers a lifetime. Everything from mortgage's to credit cards, auto loans to car title loans and the like, require us to give pertinent personal information including our social security number, driver's license and mother's maiden name. As much as we want to believe that our personal...

Short Term Payday Loan Is It Part Of The Car Buying Process
? Deciding on how much to spend on a new or used car can be quite a decision. Unlike some other expenses you may have, you should be in the drivers seat when it comes to purchasing an automobile. Whether you finance with the dealer, utilize a short-term payday loan to help with the down payment, or pay cash (wouldn't that be great!), the decisions you make could affect your finances for years. Depending on where you live, you may or may not have to spend a lot on a car. In fact, living in...

What s The 411 Prime On New And Used Small Business Phone Systems
? Choosing the right new and used small-business phone system for is one of the most important decisions you'll make for your business. The telephone is one of the easiest means of communication with your customers, partners, vendors and employees. You reach out to them; they reach out to you via the telephone. A phone system allows your business to connect to a public phone network instead of having each phone connect separately. Dealing with incorrectly routed calls, sudden interruptions,...

Publishers / Webmasters
Article ID: 453157
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

255 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Cheap Linux Server Hosting Provided By AwareIndia

Company IDS