What’s Buy Here Pay Here (BHPH)?

If you are searching for “What Is Buy Here Pay Here“ or “ What Is BHPH” this post should help! What does buy here pay here mean? Buy Here Pay Here is a phrase that refers to “buy here pay here automotive dealerships” that enables customers to buy an automobile and pay financing payments at the same dealership where they bought their vehicle.

Buy here pay here is a fantastic option for people that want to purchase a car but have no credit or their credit is bad. Buy here pay here car lots are basically car dealerships that offer to finance at the same location where you bought the car.

  • Bad credit or no credit car dealerships
  • Buy here pay here auto dealerships
  • Buy here pay here financing dealerships
  • You can buy a vehicle with very little to no credit
  • Making on-time payments can actually help increase your credit score (*only if the BHPH dealer reports to the credit bureau)
  • You can trade in your car for value towards another used car

Why Can’t I Just Go To A Bank or Credit Union To Get A Loan From?

You can get a loan from a bank or credit union if your credit is but most borrowers who decide to go with a buy here pay here dealership usually have poor or no credit so getting a bank or credit union approved loan is nearly impossible. BHPH dealers are your only alternative if you have bad credit or no credit.

How Does Buy Here Pay Here Work?

Buy here pay here works by making your car payments at the same dealership where you purchased your car. It’s essentially a one-stop shop where the financing company is the car dealer.

How Does Buy Here Pay Here Financing Work?

Because the BHPH dealer decides on the loan, getting approved is typically guaranteed as long as you can prove you can make the payments. If your income is steady and you have a home address, your chances of getting buy here pay here financing is excellent!

BHPH Is Going To Mean Higher Interest Rates

Because you are a high-risk loan borrower, your interest rates will be almost double that of a traditional bank or credit union loan. BHPH dealers can charge higher interest rates when dealing with borrowers that have poor or no credit. The dealership knows that there is no guarantee that the borrower will repay the loan because they have little to no credit history to prove they can.

Additionally, be sure the BHPH dealership you choose is near your home. A lot of BHPH dealers will only take payments in person rather than online, mail or phone. If you decide on a dealer that is not near your home, you will have to take weekly, bi-weekly or monthly drives out to the dealership to make your car payments.

The Differences Between Traditional Dealerships & BHPH Dealerships

Usually, buy here pay here dealer is only called “no credit dealerships” or “bad credit dealerships”. But, over the years, the line between a BHPH dealership and traditional dealerships have become a little gray. Several traditional used-car and new-car dealerships are making buy here pay here available as a financing option. If the dealership says “We Finance”, that is typically a sign of a buy here pay here dealership.

If you can’t or don’t think you can get bank approved financing, start out at used car dealerships that offer easy financing or the rebuilding of your credit.

Making Late Payments To A BHPH Dealership

When you deal with BHPH dealerships or bad credit dealerships, their late payment policies are usually pretty strict. However, most BHPH dealerships will allow a grace period and tell you to let them know if you get into any money troubles and cannot make your payments. A lot of dealerships realize there are tough circumstances and will work with you before repossessing your car. But if you fail to get a hold of them or miss multiple payments, they will repossess your vehicle.

Why Should I Buy A Vehicle At A BHPH Dealership?

The only rationality that you should purchase a vehicle at a high-interest BHPH dealership is if you have little or no credit. If you have a little credit, you should absolutely try traditional financing first prior to going to a BHPH dealership. This will save you more money on financing and start to build your credit.

Benefits of Buy Here Pay Here

  • You can purchase a vehicle with little or no credit
  • Making your payments on-time can, in fact, help increase your credit score (*but only if the BHPH dealer reports them to the credit bureau)
  • You can trade your used car in, for value towards another used car

Find A Buy Here Pay Here Dealership In Phoenix, Arizona

If a bank or credit union lender doesn’t want to loan you money for a vehicle because of your credit, BHPH dealers are pleased to put you behind the wheel today. If you live around the Phoenix, Arizona area and are wondering if a buy here, pay here car dealer is the right choice for you, stop by In-Power Motors. We are a buy here pay here dealership in Phoenix, Arizona ready to get you in a car today! Our BHPH dealership also works with buyers with bad credit.

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