What Is Buy Here Pay Here?

Buy here Pay here is a perfect option for those who are looking to buy a car but have no credit or poor credit offering the services like:

  • You are able to purchase a vehicle with little to no credit.
  • You are able to use your old car as a trade in value for another used vehicle.
  • Being able to make on-time payments will help to increase your credit score but only if the buy here, pay here dealership you choose reports it to the credit bureau.
  • Dealerships who offer financing where you purchase the car.

Can’t I Just Get A Loan From The Credit Union Or Bank

It is almost impossible to get a bank or credit union loan if like many borrowers they have poor credit or even no credit. However, the buy here, pay here dealers are a great option if your credit is not great.

How Does Buy Here Pay Here Financing Work?

One big advantage of a buy here, pay here dealer is they are the ones who make the final decisions regarding the loans. Hence, approval for the loan is usually guaranteed as long it can be shown you are capable of making payments on time and have a home address, there is a very high chance your application will be approved!

BHPH Means Higher Interest Rates

As you are going to be a borrower with a loan that is considered high risk, you are going to have to face interest charges that will be double that of a traditional style bank loan. This is because the dealer does not have a guarantee the borrower will repay the loan as there is no credit history to back up the loan. Therefore, you want to ensure the dealership is close to home as many of the dealers will only accept payment in person instead of by mail, phone or online. So the chances are you will have to make, biweekly, weekly or monthly trips to the dealership to make the regularly scheduled payment.

The Difference Between Traditional Dealerships & BHPH Dealerships

Often buy here, pay here dealerships are known as no credit or bad credit dealerships. However, over time those lines have become blurred. Today, some traditional new and used car dealerships are now offering buy here, pay here as options for financing. When the dealer states they finance, it is usually a sign they are a buy here, pay here dealer. If you are not able to obtain approved financing through a bank, start-out at a used car dealership such as Dodge or Chevrolet who offer credit rebuilding and easy financing options.

The Downside Of BHPH

One large downside is some BHPH dealerships don’t have a very wide selection, something In Power Motors strives to be the best at. Normally, a car buyer would come into a lot and pick out the car they desire and then discover if they can get financed for it. A buy here, pay here dealership will qualify you for financing before they determine how much money they will let you borrow. The dealer will then show you a range of cars within the approved price range for you to choose from.

Making Late Payments To A BHPH Dealership

Late payment policies are very strict when you are having to deal with a buy here pay here dealership. However many will offer you a period of grace and ask you to call them should you find yourself having financial troubles. Many dealerships will understand difficult circumstances and will work with you to find a solution before they have to repossess the vehicle. Your car, however, will be repossessed if you miss several payments in a row or fail to contact the dealer.

Why Buy A Vehicle At A BHPH Dealership?

If you have the credit available, you should first try to go the route of a traditional car dealership and financing that way. In the long run, you will build your credit and save money on financing. if you have bad credit or no profit, BHPH dealerships are a feasible option!

Benefits of Buy Here Pay Here

  • Making on-time payments can help to increase your credit score if the dealer reports it to the credit bureau.
  • You can use your old car as a trade-in value towards another car
  • You can purchase a car with little to no credit

Find Buy Here Pay Here Dealerships In Phoenix, Arizona

Whenever a credit union or bank lenders won’t provide a loan for a vehicle, a buy here pay here dealership will be willing put you behind the wheel today. If you live in Phoenix area and are wondering if a buy here pay here dealership is best for you, stop into In-Power Motors. We are a  buy here pay here dealership in Phoenix, Arizona that is ready to get you dr

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