Buy here pay here used car lots generally prey on those who are unable to obtain financing from a traditional bank. The interest rate can run anywhere from 10%-29%.No matter what the down payment, or ones credit, you may still be looking at fees that will run into the thousands of dollars if you do not look at the fine print.
Most buy here pay here car lots do not run any sort of credit check. What that means is the standard laws that apply to a consumer are not protected under the Fair Credit Reporting Act. They have only been licensed by the bank to offer financing in the most general of terms. Since the bank covers the financing, but the car lot represents the buy here, pay here advertising, the laws are very lenient when it comes to the financing. One must be careful when it comes to this sort of loan.