Buying a car from a "We Finance All!" place...

[Kate and Pete]

I might have to buy a new-to-me car, as my old car might be on its last legs.

The car I want is a Dodge Charger with Police package - and it's for sale as a used car place that finances all sorts of credit! My credit's good (probably really good) and I'll be getting a loan from my credit union. Is there any reason I should avoid buying at that type of place?

And please excuse my naivete!

 

[seashoreCM]

I think you are quite safe with the financing through your credit union.

As far as the car itself goes, it should run absolutely perfectly and everything (all the accessories, windows, etc.) must work perfectly before you commit to buying it. It is a good idea to have an expert with you when you look at any used car.

There are lots of pitfalls people run into when using dealer financing. One particulary bad one is finding out that the financing was not really approved and then you have to bring the car back and pay the equivalent of rental agency rates for the time you had it.

 

[BridgetBordeaux]

In the big scheme of things, the independent dealers are on the bottom of the food chain regarding car quality.

It is important that you have an independent inspection of the car and run a carfax on it. You should also talk to a local Dodge dealership and see if they will pulll the warranty history.

Be very very cautious, I am glad you may secure outside financing, but the quality of the vehicle has to be proven to be top notch before you start negotiating the price.

Do not disclose to them that you are using outside financing. They may accept a lower price for the car if they think you are using their financing. Once you settle on the low price, then discuss the fact that you are having second thoughts about their rates.

 

[tinatark]

Those type of places usually do not have the best car for your $$ - if your dad is financing/cosigning for you - look at craigslist, ebay, carmax, autotrader.com - I guarantee you will find a better car for the price.

If the car has the police package - they probably bought it at a police auction - I would stay away from those cars - note aggressive police officer driving!

 

[tvguy]

In the big scheme of things, the independent dealers are on the bottom of the food chain regarding car quality.

It is important that you have an independent inspection of the car and run a carfax on it..

I would qualify the first part with, independent dealers who specialize in we finance all are the bottom of the food chain regarding car quality, because the car is the secondary thing they are selling, the financing is their primary business.

Carfax......well......too many major issues never ever make CarFax for it to be your only check of a used car. They rely on things reported to DMV. And in OPs case, a used police car, government agencies exempt themselves from reporting laws in many states, so it could have been totaled as a police car and there would be no record of an accident.

 

[jel0511]

The one big thing the "we finance all" places don't tell you or put in writing is that for those with poor credit in addition to paying an extremely high interest rate they'll require a high down payment, up to 50%. Hey, they are still offering you financing so they're not falsely advertising but its not advantageous to you to take the deal. So be careful.......

 

[arminnie]

You should have the option to have a really good mechanic check it out (be prepared to pay for this) and research what price levels are for what you want.

Then it doesn't really matter who you buy it from. I know some people who have worked those "sell to anybody" cars. They make their money off the financing. Sometimes they have good cars.

But no matter who you buy it form you should always have it checked out.

I have a 2006 Odyssey with only 50,000 miles on it that I am thinking about selling. I've taken great care of it but I could no more tell someone what the car is like mechanically than anybody on the street. I have record of all the service but I'd still expect someone to have it checked out.

 

[danygirl]

Avoid that place! Dh worked at one for a while, Stear clear.

 

[powellrj]

I would be surprised if they would sell to you. When I was buying a car for cash for my DS, I stopped in at one to see what the price of a car was and I was told they don't sell cars, they sell credit and you couldn't buy a car with cash from them.

 

[Arielle22]

The cars sold there are the cars the dealerships don't want. I worked at a dealership for 7 years. Cans that were traded in but weren't up to our standards (older cars, higher mileage) went to the auction.

I have bought a car prior to it going to auction and it lasted me a long time. However I knew that the wholesale manager wasn't going to let me buy a bad car plus I had a mechanic check it over.

 

[rszdtrvl]

Most of the cars at our local "We finance all" places are actually cars that have been deemed as totaled by insurance companies.

Be sure (well always be sure, but especially with a smaller "finance all" dealer) to get a Carfax report!!

 

[wiigirl]

Those type of places usually do not have the best car for your $$ - if your dad is financing/cosigning for you - look at craigslist, ebay, carmax, autotrader.com - I guarantee you will find a better car for the price.

If the car has the police package - they probably bought it at a police auction - I would stay away from those cars - note aggressive police officer driving!

 

[lvillotta1]

DO NOT make this mistake. Under no circumstances should you buy a car from one of these places. Go to a reputable dealership and find something in your price range. If you are looking for a good reliable used car go with a Toyota or Honda. You can never go wrong. Very reliable and dependable. Go to those dealerships and they have warranties on their used vehicles. You might be surprised at was a low interest rate the dealerships might give you for good credit. When I bought my first Honda CRV I had 0% interest for 5 years. Can not beat that.

 

[LaurLaur04]

Some people here are just rude. My dad used to own one of these places. He was a favorite around here. Always sold great quality cars at great prices. Just do EXTENSIVE research and definitely get a carfax. There are many that will rip you off but there are some that are awesome. Check Kelley Blue Book too.

 

[TheRustyScupper]

1) I have aided the establishing of two "buy-here-pay-here" dealerships. *
2) Alas, they both have the same problem.
3) They make their money from
. . . financing the purchase
. . . repossessions
. . . reselling and refinancing the repos
4) The cars they buy are usually average, at best.
. . . the better cars are snapped up by larger dealers
. . . the left-overs go to these lots, as they are so much cheaper
5) These dealerships have their place for folks needing a car and no/bad credit.
6) For other purchasers. it is best to avoid them, unless
. . . you have done you homework
. . . know the most to pay for the vehicle
. . . take the car to a dealership and have a complete evaluation
7) When you do evaluations of used cars, thing to check are
. . . belts, hoses, oil, radiator
. . . transmission and differential cases, slow/grinding gear changes
. . . engine compression (very important)
. . . A/C and heater
. . . brakes, master brake cylinder
. . . noisy wheels and bearings, tie rods, ball joints


* I volunteer with the Disney Entrepreneur Center in getting folks
started in business, or improving their bisiness.