I’m considering financing my car through a buy here pay here dealership and I’m curious if it’s possible to negotiate the interest rate. Has anyone had experience discussing or negotiating rates at these types of dealerships? Any insights or advice would be appreciated.
I’ve had a run-in with buy here pay here places a few times, and in my experience, they rarely budge on the interest rate. I remember once trying to bring up the idea of a discount, and the manager basically said that everything was set in stone. It seems like they work on pretty tight margins since they’re often dealing with buyers who have less than perfect credit, so there’s not a lot of wiggle room. That said, if you’ve got strong numbers or a good relationship with the dealership, it might be worth a shot to ask politely. But honestly, it probably won’t change much. It really depends on the place, so if you have options, it might be smarter to shop around for better financing elsewhere.
I’ve seen mixed results on this. With most buy here pay here spots, the rates are usually pretty much set due to their business model – especially since they cater to buyers with challenging credit histories. That said, there might be some room for discussion if you can show that you’re a lower risk than you appear on paper or if you have a competing offer from another lender. I’ve noticed that with the recent uptick in interest rates and increased regulatory inspections, some dealers are a bit more cautious about making any changes to their preset terms. It might not hurt to politely ask, but be prepared that many of these lenders will stick to their standard formulas. Good luck!
Based on my time dealing with these types of dealers, negotiating the interest rate at a buy here pay here lot is rarely fruitful. They set their rates according to strict guidelines revolving around your credit risk, and they’re not exactly eager to change that formula. That said, there have been instances where showing proof of improved finances or a steady income stream made a tiny dent. Even when the numbers don’t change much, some dealers might be willing to adjust certain fees or add-ons to make the deal more palatable. The real trick is coming in armed with preapproved alternatives from banks or credit unions, which can serve as leverage in your discussions.
I’ve been around a couple of buy here pay here spots, and honestly, it seems like the negotiation you can do is more about the little extras than the interest rate itself. In my experience, the base rate is kind of fixed because they’re already factoring in the risk upfront. There was one instance where I managed to get a couple of fees reduced, which helped a bit overall, but nobody really lowered the actual rate by a noticeable amount. It might be worth asking around, but I wouldn’t bank on a big drop unless you have some compelling leverage like a strong trade-in or a significant down payment.