Looking for Buy Here Pay Here Financing? Don’t Believe Everything People Say

Despite the benefits of stress-free loans, fast approvals, and in house financing Houston, there have been some misconceptions about buying used cars. There’s no exactly justifiable reason though.

In an in-house or buy here pay here financing system, you get finance on a used car even if you’ve bad credit or no credit at all.

Here, in this article, we bust some of the most common myths you ought to know.

Myth 1: Buy Here Sell Here Dealerships Only Turn and Burn Vehicles

A collection of cars at a buy here pay here Houston dealershipMostly, buy here pay here dealers sell a similar type of used cars as are available for Houston used auto sales. It’s a myth that these dealerships repossess and resell the vehicles. However, in actual, this makes no financial sense due to massive expenses of fixing the cars and difficulty in reselling a vehicle numerous times a year.


“It’s a myth that buy here pay here dealerships repossess and resell the vehicles.”


Dealers, in actual, prefer working with customers to complete the term of their loan than repossessing the car.

Myth 2: Interest Rates Are Sky-High

The hoax about unrealistic interest rates up to 30% is the biggest scare tactic used against buy here pay here Houston. The actual interest rates linger at an average 20% APR. It’s pretty reasonable, considering the risk that dealerships lend their money to people having bad credit and small down payments.

Let’s not forget the fact that this industry is state-regulated. As such, the state government determines the interest rate caps for buy here pay here financing plans.

Myth 3: Down Payments Are Exorbitantly High

down payments for in house financing HoustonAt the beginning of buy here pay here business model around 1950s, down payments covered total or approximate inventory cost of the cars.

But, things changed with times. Currently, high wholesale prices and limited budgets of car buyers make it difficult to ask for high down payments.

Now, you can easily find a car that fits your budget. Most importantly, the dealerships are willing to create customized payment plans before approvals.

Myth 4: The Industry Is Shoddy and Unregulated

Most of the people conjure the image of an unregulated industry when they hear about buy here pay here dealerships. That’s an inane misconception. The dealerships offering in house financing Houston operate with numerous regulations and laws above them.

Check out this list of rules and acts to ease up your nerves:

  • The Safeguards Rules
  • The Red Flags Rule
  • The Truth in Lending Act
  • State & Federal Unfair & Deceptive Practice Laws
  • The Privacy Rules
  • The Disposal Rule
  • The Used Car Rule
  • State Usury Law
  • Risk-Based Pricing Rule
  • Fair & Accurate Credit Transactions Act
  • The Fair Debt Collections Practice Act

“The dealerships offering in house financing Houston operate with numerous regulations and laws above them.”


Well, that’s eleven acts, rules, and laws that every used car dealership follows to the tooth. Any non-compliance results in penalties and strict actions by the state or federal government. So, you’re in safe hands when you apply for in house financing Houston.

Myth 5: You Have No Options to Find a Better Deal

A tab and letter pad on a tableWhen buying a used vehicle from a buy here pay here dealership, you needn’t jump to the first deal that comes your way.

Instead, follow the process similar to how you’ll buy a new car.

Exhaust your options, do research, and compare the dealerships to find the best offer. Options may be limited; they are nonetheless available if you delve deeper.

Myth 6: Buy Here Pay Here Dealers Charge Late Fees

Apart from repossessions, it’s another myth that buy here pay here dealerships charge an excessive fee for late repayments while banks don’t. Some dealers may imply additional charges to ensure timely payments.

But, their fee is significantly low when compared to banks. Most dealers don’t even have any late fee because they understand the financial constraints of their customers.

So, it’s clear that buy here pay here dealerships offer hassle-free credit to car buyers having poor credit and limited down payments. Now that you know the truth about their business model, find the best in house financing Houston that comes with fast approval and low interests.

For Affordable In House Financing Houston, Call Liquidators Auto Sales Today!

Liquidators Auto Sales is a Houston-based in-house financing dealership offering an extensive range of used cars. We have flexible and customized financing programs to help you buy your dream car. Call 713-681-1200 to speak to our advisors today or contact us.

Button for Learn More

Looking for Buy Here Pay Here Financing? Don’t Believe Everything People Say | Liquidator Auto Sales – Houston, TX