dealerships

Changing Gears
11:53 am
Fri January 27, 2012

6 tips on "Buy Here-Pay Here" car lots

SeeMidTN.com Flickr

Yesterday, we brought you the story of Buy Here-Pay Here dealerships in the Midwest. These are places where the dealer finances car loans himself (BHPH is sometimes called in-house financing.).

Basically, he is the bank and he takes on all the risk. That’s especially true because BHPH dealers cater to people with bad credit – deep subprime customers who typically have credit scores less than 550.

It’s not hard to find people who are out of luck, out of work, and grateful for the opportunity to finance a car at all. But that opportunity comes at a steep price, which is either folded in or added on in the form of interest rates up to 25 percent.

So here are six tips to consider if you’re thinking about Buy Here-Pay Here:

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Auto/Economy
10:20 pm
Sun March 13, 2011

Most customers think their new car dealers are honest

Most people think their dealerships are being honest about recommended repair and maintenance work.  That’s  according to an annual survey by J.D. Power.  

J.D. Power says only 7% of people say their dealer tried to sell them maintenance or repairs they didn’t need.  The practice is called “upselling.”

Research director John Obsborn says customers’ satisfaction with dealerships has been steadily improving for a decade:

" Unfortunately there are many stereotypes out there about the dealers -- but our data indicates that they provide high levels of satisfaction both in the servicing of vehicles and the selling of vehicles."

Osborn says vehicle quality has also been improving for the past ten years – and that tends to increase people’s satisfaction with their dealerships, who don’t have to give customers bad news in the form of high repair bills as often.   

The survey found little difference among perceptions of upselling between brands, luxury and non-luxury vehicles, or between men and women. 

Younger customers were, however, more likely to think their dealership was trying to sell them an unnecessary repair or maintenance.