BUY HERE PAY HERE IS AN OPTION FOR BUYING A USED CAR FOR THOSE BUYERS WHO DON’T QUALIFY FOR OTHER FINANCING OPTIONS.
If you want to buy a new or used car, but really lack enough finances and the means to support your purchase, here is what you can seek for – Buy Here Pay Here. BHPH dealerships are willing to finance a used car when other traditional third-party financing companies such as banks, credit unions, automaker-associated lending companies such as Ford Motor Credit and so forth don’t consider you as a reliable borrower. You can look to a BHPH dealership when you find no other financial avenue available to you.
IS IT A FINANCE COMPANY?
BHPH is a finance company that sells a used car to you and also finances the money to buy it. You will get a loan from them and make payments weekly or biweekly at the dealership. But, why would a BHPH dealership give you a loan, when they already know that other financing companies have disqualified you? Why the dealership is super-motivated to support your purchase is because he sells his car to you. The dealership will make money not just by that car you purchase from them but also from the high-interests that they charge on the loan.
Though you can make payment to BHPH dealership via phone, email or online payment methods, many BHPH dealerships require you to come physically to their office with cash. Make sure you deal with one who is near your home or workplace.
SHOULD YOU GO TO A BHPH DEALERSHIP?
Yes, of course! But, have you gone to the traditional financing companies first? BHPH dealership should only be your last option. Ensure that you tried all the traditional financing options well enough! Your credit may be better than you have an idea about it. But before you go to a BHPH dealership, get to learn about the differences between BHPH dealers and traditional dealers.
HOW BHPH IS DIFFERENT FROM TRADITIONAL DEALERSHIPS?
It largely depends on which BHPH dealership you visit but there are some common differences between BHPH and traditional dealerships. Typically, a traditional financing company will start with financing after the purchasing process is nearly over. There, you first choose the car you want to buy and then begin the financing process that is where you explore different payment options.
The process is reversed in case of a BHPH dealership. You will have a limited set of choices for your purchase since the dealership will assess your financial situation first and perhaps he will have your credit report before him to see that. After having an in-depth insight into your financial history, he will tell you what purchase options you can make a choice from.
A traditional dealership may also have a BHPH financing options. You might identify such dealerships with advertisements “easy financing” or “opportunity to rebuild your credit”.
Another important thing you need to know is the late-payment policy. Choose a BHPH dealership that offers a grace-period as a relaxation for late payment. Get to know that your BHPH dealership specifies the length of the grace period in contract, which is the time between one of those missing payments and repossess
ion of the car by the dealership.
WHAT ARE THE BENEFITS OF BUYING A CAR FROM BHPH DEALERSHIP?
BHPH is a good option for those buyers who are very tight on budget and need to buy a car. For example, if you are not able to make a good down payment, you might not be considered for a loan by other financing companies. Also, if you don't have a strong credit report, the traditional companies may deny you for a loan. At that point, BHPH can lend you money for purchasing a car. Second, this is an opportunity to build a positive credit history; be sure that your BHPH dealership reports payment history to a credit bureau.
Highlights for you – When your credit history reveals all the bad numbers, BHPH can help you with better solutions.