Beware of Buy Here, Pay Here!!

Beware people!!! I know you have heard of the “Buy here, Pay here” car sales places throughout St. Louis. Even though their deals might sound nice, don’t be fooled by the glitter thinking it’s gold. Because it’s not people! Falling for this trap could put any financial situation in a void that you don’t want to be yours. If you don’t know exactly what I am talking about right now, I am happy you let you know.



You hear the ads on the radio all the time. You may even know a commercial by heart because you hear it so much. Not ringing a bell yet? Some places I’m talking about are InstaCredit AutoMart, CarHop, and OK Used Cars. Oh yes, those places. There are some things you should look out for when you visit these car lots. The red flags are:


If you hear “We don’t care about your credit” it’s time to run for the hills because you are about to get duped. You shouldn’t be approved for a car so easily if you don’t have credit. Sure, some people don’t have credit for reasons like never having a credit card, but you have to wonder what this car lot is doing so differently that other lots aren’t to be able to offer cars to clients with no credit.


Car lots like these line the main roads of main low-income neighborhoods in St. Louis. 



Most times, these lots will be filled with very unlikely contenders. You probably won’t get an eye sore for a car. You’ve got a cool looking ride. That’s great! But then the check engine light comes on. Now you’ve got to take it to a mechanic and pay to find out what’s wrong with your car.Now you have to deal with car troubles that will cost you a nice amount because you have no warranty for your lovely car you just got from the buy-here-pay-here car lot.


In a previous article, I mention everything you need to buy a used car. There is a lot of paperwork that needs to be done for a car to be sold to someone. If the right paperwork is not with the owner, there will be many problems to come, both legally and financially. These buy-here-pay-here car lots can have some dubious paperwork for you to sign when it comes time for you to actually get the car. Read over everything carefully before you sign anything. You don’t want to face legal issues down the road because of something you signed.


These car lot salesmen will approve you for a loan for your car, and you think it’s great because no one else will. It’s more than likely that you haven’t gotten approved because you can’t really afford to pay back a loan at this point in your life. So ask yourself, “What makes this time different?”


The answer is: you were sold a high interest loan. You could end up paying $22,000 on a car that was only worth $5,000 just off the high interest of the loan, that probably no one told you about. That is a dreadful difference in the amount of money coming from you. To think, you came to this kind of car lot because your financial situation isn’t the best and you just wanted a little help.

I know, sometimes we can’t help but grab that shiny object dangling in our face. Even though you might think it’s a good idea to check out these “buy-here-pay-here” car lots, it will not pay off in the long run. Take some time to get your financial situation in a better place. Research the topic a little more, and ask family and friends for advice. When you know you’re ready to buy a car, try going to a car lot that isn’t a “buy-here-pay-here” lot.