If you’ve heard the term buy here pay here (BHPH), you may be wondering what it’s all about. It refers to a type of dealership that doesn’t rely on outside lenders to finance vehicles for customers – which is why they’re also known as in-house finance dealers.
How Can You Benefit From a BHPH?
A buy here pay here dealer can be a good “last chance” when you have bad credit and have been turned down for a subprime auto loan. BHPH dealers don’t typically check credit. Instead, they rely on your income for loan approval. Much of the time, this means you can walk in – with proof of income and cash for a down payment – and drive off in a vehicle the same day.
Using an In-house Financing Dealer
When you’re struggling with credit issues, a bad credit car loan can be a great tool for building credit. But since BHPH dealers don’t usually check your credit, they may not report your loan, either. This means your timely payments probably won’t help improve your credit, and you may be stuck in the same boat when you need your next vehicle. So, if you’re going to go this route, make sure the dealer reports to the credit bureaus.
Before you jump behind the wheel of your vehicle, you’ll have to provide proof of income with recent check stubs (the minimum amount required will vary between dealers). Also, you’ll typically need to provide both a down payment and the first payment upfront, along with a valid driver’s license.
As for vehicle selection, in-house financing lots tend to offer older model used vehicles. You’ll most likely have to make payments in person on a weekly or bi-weekly basis, and payments even one day late may result in repossession. It’s also very likely you’ll pay a higher interest rate when you go this route for vehicle financing.
Finding a Beacon of Hope
Having a higher interest rate and a limited vehicle selection may not be your ideal situation. But when you need a car and a subprime auto loan isn’t for you, buy here pay here dealers may be just the solution. If you don’t know where to go to find a quality BHPH dealer near you, Drivers Lane wants to help.
We work with an extensive network of dealers, including BHPH dealers and special finance dealers that work exclusively with subprime auto loans, that can help get you into the vehicle you need if you’re struggling with credit issues. Don’t go from dealer to dealer trying to find one that’s right for you – get the process started with us today. Just fill out our simple online auto loan request form, and we’ll begin searching for a dealership in your area.