The term Buy Here Pay Here is spoken frequently in the car business, but for the person that is unfamiliar with the term it means that you buy an automobile and finance the vehicle at the same place. For example; the car dealer sells you the car and finances the car with in house financing. There are not any outside lenders involved so you pay the car dealer the payments according to the agreement that was made with the Buy Here Pay Here car dealer.
Typically payments are made weekly or biweekly and you are required to bring that payment to the dealer in person. That’s where the term Buy Here Pay Here comes from. This type of car financing arrangement is becoming more popular because it was designed to cater to the car buyer with poor or bad credit. Between the economy and the tightened lending practices that have been adopted by vehicle lenders there has been a greater demand for the BHPH car dealer.
Car Dealer vs. Buy Here Pay Here Car Dealership
Most of the traditional car dealerships that you see sell vehicles and finance them through third party lenders that the dealers represent and then monthly car payments are made to lender. These dealers will process the paperwork and auto finance contracts, but they do not service the loans. In the car business they call it selling the paper and the lender buys the paper or your auto loan. When you visit the traditional car dealership they assume you have acceptable credit to finance a vehicle and discuss financing after the test drive and negotiation.
However at the Buy Here Pay Here car dealership everything is about the credit worthiness of the prospective car buyer. The first step in the car buying process is to discuss credit, income, down payment and pull credit reports. After an assessment of the buyer’s finances they are shown a selection of vehicles that they are qualified to buy and finance based on their financial situation. A vehicle is selected and then the paperwork is completed.
When you go to the standard car dealership most of the time is spent test driving and selecting a vehicle. The worthiness of the customer is assumed and handled at the end of the car buying process. The car dealer assumes that you can buy and finance a car when you come to their dealership and you are treated like a guest. They want you to feel welcome and comfortable about buying a car from their dealership.
Why Go to a Buy Here Pay Here Car Dealership
The basic business model of the Buy Here Pay Here Dealer is to help people with credit problems buy and finance a car. People that have been turned down by the traditional car dealer still need cars to go about their daily life and if they don’t have the money to pay cash buy here pay here in house financing can be the perfect solution.
Most BHPH car dealerships carry a good selection of vehicles that qualify for auto in house financing that range from compact cars to pickup trucks and vans. Take a look for a car lot near you at our main Buy Here Pay Here Car Dealer directory.
…Save some time and be approved before going to the dealer…
