Buy Here Pay Here In Houston: How It Compares To Lender Financing
The short answer
Buy here pay here means the dealer itself lends you the money and you make your payments to the dealer. With lender financing, a finance company pays the dealer for the car and you make your payments to that company. At Triple J Auto Investment, financing goes through lending partners such as Credit Acceptance, and you can get pre-approved online first without it touching your credit.
How buy here pay here works
The dealer sells you the car and holds the loan. The dealer's name goes on the title as the lienholder, and the title is released to you once the loan is paid off.
Because the dealer decides who to approve, buy here pay here lots often work with buyers a bank turned down. The trade-off can be a higher rate, a larger down payment, or weekly payments.
How lender financing works
A finance company reviews your application, sets the rate and the term, and pays the dealer. You make your payments to the lender, and the lender is named on the title until the loan is paid.
Lenders like Credit Acceptance work with many credit situations. At Triple J Auto Investment the pre-approval form takes about two minutes. It does not touch your credit. Any credit check happens on the lender's own site, and the lender decides approval and terms.
What Texas law caps
In Texas, a car sold on payments is a retail installment contract, governed by Chapter 348 of the Texas Finance Code. The law caps the finance charge, and the cap depends on how old the car is. These contracts are overseen by the Office of Consumer Credit Commissioner (OCCC).
Ask these five things before you sign
What is the total price, with tax, title and fees, written down? What is the APR? How many payments, and how much is each one? How much is due today? What happens if a payment is late?
Get every answer on paper before you sign. A good dealer shows you each page first.
On the lot now
Questions buyers ask
Does getting pre-approved hurt my credit?
The pre-approval form on the Triple J Auto Investment website does not touch your credit. If you continue to the lender's application, the lender may run a credit check there.
Can I get a car with bad credit in Houston?
Often, yes. Some lenders specialize in lower credit scores. Approval, rate and down payment are decided by the lender, so the quickest way to know is to apply.
Who holds the title while I'm paying?
Whoever lent you the money is listed on the title as the lienholder until the loan is paid off. That is the dealer on a buy here pay here deal, and the finance company on a lender deal.