Sunday, July 27, 2014

Should I consider Buy Here Pay Here?
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I need a different car because mine is falling apart. Tires are bald, check engine light is on, and it barely stays running. But I'm strapped for money. I'm trying to find a creative way to afford basic transportation.

I've been doing some research on the interwebz at and came across car donation articles but am not sure if that is an option for me.

I've also came across local dealers near me who offer buy here pay here. Because I'm in the Knoxville, TN, area, I've found a list of buy here pay here car dealers in Knoxville at

The problem I am having is that many of the cars are expensive as all get out when looking at their mileage.

I found a 2000 Mazda with almost 150K miles for $4000 but it has a lot of mechanical issues -- needs tires and makes funny noises. Granted, I realize that the KBB price ranges from 3K to 4K for this car but with tax, title, and license, it seems way too expensive.

The only benefit I can find is that I can pay at the dealership. I probably should try and apply for a loan through a bank. The interest rates nowadays are insane.

I thought about ditching the car and just riding a bike. I don't live too far away -- about 10 miles round trip. That's doable, I think.

I read some stuff on where people were commuting way longer distances, so I think it's possible. But I don't have a good bike, anymore.

I may look around the area and see if I can get a better deal at a car dealership and do a lease.

From what I'm seeing, a lease on a Ford Fusion would be around $129 per month for 24 months. There would a $4,173 lump sum due when signing, though.

I would not own the car but I don't think I would have problems with it, though.

For my own benefit, I might as well figure out how much is will cost to lease vs do a buy here pay here program.

Lease: $129 a month x 24 months = $3,096
Down payment: $4,173
Total 2 year cost: $3,096+$4,173=$7,269

Sample BHPH financing: $4,000 for purchase x 20% average interest rate, with 24 months to pay off balance = $1600 for interest
Car issues because of buying used = $1500
Total 2 year cost: $4,000 + $1600 + $1500 = $7,100

It looks like the cost to purchase a used car from a buy here pay here dealer is almost as much as leasing a car. The difference is that you won't own the car through leasing but on the same token you won't have a piece of junk that doesn't run, either.

Well, I can see a buy here pay here dealer is not for me.

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