The credit markets have changed for reasons many don’t fully understand. This has led to the rise of buy here, pay here car dealers. A few years ago, those with low credit scores could still get an auto loan if there was a substantial down payment. But the rules have changed. These people will no longer be eligible for a conventional or sub-prime loan. Because people still need cars to live in modern society, the Buy Here-Pay Here (BHPH ) car lot is the only choice.
Car dealers that sell here-pay-here vs. Traditional Car Dealers
Most people are familiar to the traditional car dealer. The dealer sells the used or new car and arranges financing through a third party lender. The buyer must have a satisfactory credit score and past history to be approved for the auto financing. Also, they need to have a steady job or income source that can pay back the automobile installment loan. They will not be allowed credit to purchase the car if they do not meet the requirements.
This is where the dealer who buys here pays here cars comes in. They run a business that operates exactly like its name. The customer will purchase from them and then pay them. This is a non-traditional car dealer that caters to those with poor credit, or who have difficulty getting financing at a traditional car dealership. In house financing is offered by BHPH car dealers. This means that the buyer doesn’t have to apply to a lender for an automobile loan. The car dealership basically sells and finance the vehicle.
The BHPH Solution for Car Buying
While buying a car through a buy-here-pay-here car lot may not be the most economical option for financing an automobile purchase, it may be the only one that is available if you do not have the cash to pay. The BHPH dealership specializes at helping people with credit issues due to job losses, medical bills or any other reasons purchase and finance automobiles.
The first thing you should do is visit a buy here-pay here car dealer in your locality and speak to a specialist about your auto requirements. In-house financing by BHPH dealers isn’t as rigid as a traditional loan. Instead, the terms and car payments will be tailored to meet your financial limitations, financial needs and ability to repay. Usually, payments are made in cash at the dealership bi-weekly or weekly. Many people find this easier than paying a large monthly installment. Dealers that offer in house financing work with sub-prime lender and will gladly help you get a standard car loan. However, if this does not work out, buy here/pay here car financing might be the solution.