Buy Here Pay Here (BHPH) car dealerships are designed for people who may have poor credit, no credit, or recent financial issues. These dealerships finance the vehicle in-house, meaning you buy the car and make your payments at the same place — the dealership itself.
How Buy Here Pay Here Works — Step-by-Step:
1. Choose a Vehicle From the Dealer’s Lot
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You pick from a limited inventory.
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Vehicles are usually older models with high mileage but may be in decent condition.
2. Apply for Financing — Credit Not Always Required
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Approval is usually based on income, job stability, and residence, not your credit score.
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They often don’t do a hard credit check.
3. Make a Down Payment
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Expect $500 to $2,000+ depending on the car’s value and your situation.
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Some dealers advertise “low down payments” to attract attention.
4. Set Up Weekly or Biweekly Payments
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Most BHPH dealers require frequent payments, not monthly.
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Payments are made at the dealership or online.
5. Drive the Car Away — But You Still Owe
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The dealership holds the title until you finish paying off the loan.
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If you miss payments, the car may be repossessed quickly, often without much notice.
What to Watch Out For
| ✅ Pros | ❌ Cons |
|---|---|
| Easy approval with bad/no credit | Higher interest rates (20%–30% APR is common) |
| Shorter approval process | Limited vehicle selection |
| Builds credit only if reported (many don’t) | Frequent payments can become a burden |
| Good option for quick transportation | Quick repossession for late payments |
️ Pro Tips Before Signing
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Ask if they report to credit bureaus – not all BHPH dealers do.
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Read the contract carefully – know your interest rate, payment schedule, and total loan cost.
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Get a pre-purchase inspection – many BHPH cars are sold as-is.
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Budget for insurance and maintenance – you’ll likely need full coverage.
Example of Who It’s Best For:
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Someone with bankruptcy or repossessions on their record.
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People who need a car immediately and don’t qualify for traditional loans.
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Buyers who have a steady income, even if they don’t have great credit.
Find In-House Financing Car Dealerships in Phoenix, AZ
If you would like to find an in-house financing car dealership in Phoenix that knows how to take care of their customers, please visit InPowerMotors2.com. We have a huge list of $500 – – $1500 Down (O.A.C. – On Approved Credit) used cars for sale. Find used cars under $5,000 in Phoenix at each of our dealership locations: