Buy Here Pay Here 101: What You Need to Know

What Is Buy Here Pay Here?

A buy here pay here dealership (BHPH) is an automobile dealership where the automobile dealer itself extends credit to the purchaser of an automobile or has an arrangement with a finance company with a relaxed approval criterion.

Buy here pay here dealerships offer a unique opportunity to create or improve your credit history. Given prompt, timely payments to the buy here pay here dealership and adherence to the terms of the contractual agreement, customers can improve their credit scores and then seek a lower interest loan through a traditional auto loan financing institution at some point during the life of the purchase.

A buy here pay here dealership will be able to match up your payment dates on the automobile loan with your paycheck dates from your job. Generally, they will let you select between monthly or bi-weekly payments. All of this will make it as easy as possible to make your payments in a timely manner, thus building your credit score.

Which Dealerships Offers Buy Here Pay Here?

If you see ‘buy here pay here’ written across the windshield of a car, it is a buy here pay here dealership. It’s the same if they write ‘We Finance’. If you go to a franchised dealership like Chevrolet or Dodge that advertises ‘financing’ or ‘rebuild credit,’ those are generally code words meaning ‘buy here pay here’.

Typically, in the past, traditional car dealerships have shied away from the buy here pay here model; however, that is no longer the case. Many franchised dealerships offer buy here pay here on their used car lots – Chevrolet, Dodge, Ford, are just a few examples.

Pre-Qualification

You will not initially search for the car you want right off the bat. First, you will be pre-qualified for up to a specific amount the buy here pay here dealership is willing to lend you. You will then look among a group of pre-owned vehicles for which you qualify for. This will avoid any disappointment on your part having fallen in love with a particular car and then finding out you can’t have it.

Typically, in the past, only older model, high mileage cars have been available for buy here pay here, but that is no longer the case.

Qualifying for a Buy Here Pay Here Loan

You are a buy here pay here candidate if you want to trade-in an older model car and/or have little or no money for a down payment and/or if you’ve had a hiccup in your credit history. You might be a recent graduate with little credit history. You might be a new employee. You might be a returning veteran job hunting with a temporary job. You might be a returned employee after a layoff, illness, or injury. You might be a newly single woman entering the job market after a career as a homemaker. You might be a victim of economic downturn having to have sought relief in the bankruptcy courts. You might be a part-time employee. You might be someone with a less than optimal credit history. buy here pay here dealerships will allow you to purchase a vehicle where a finance company or bank would turn you down for a loan.

Further Incentives

Buy here pay here dealerships will engage with you and seek out available dealer incentives such as cash back rebates. Reputable buy here pay here dealerships will offer a warranty on the vehicle you’re buying. buy here pay here dealerships will offer you top dollar for your old model trade-in.

One of the benefits of buying a car from a buy here pay here Dealer is that you will, if you have an address and steady income, walk out having purchased an automobile for little or no money down. Typically, a buy here pay here dealership will offer you top dollar for your pre-owned car, truck, van, or SUV.

Another benefit is that buy here pay here dealerships simplify the process of purchasing of a car, making the purchase and financing a one-stop experience. Payment is made directly to the dealership, further simplifying the experience. Unlike banks and other auto lenders, a buy here pay here dealership is not limited to a loan that is based on the value of the vehicle.

At some buy here pay here dealerships, vehicle insurance is included in the purchase price and thus the monthly payments you make. This further makes the car ownership responsibilities easier and indeed a one-stop shopping experience.

Yet another benefit of making a buy here pay here auto purchase is if you are trading in an older model car with a buy here pay here dealership purchase you will be able to purchase a better, newer, safer vehicle than you might otherwise. This will result in saving you money over the long run in repair, maintenance, and operating costs.

Almost every buy here pay here financing dealership will be connected with the appropriate jurisdiction’s Department of Motor Vehicles. The buy here pay here dealership will be able to get your new car registered and the tags on the way before you step out of the door.

As in any business dealings, it’s recommended that you get all promises and conditions in writing before you sign.

Auto Now Wichita

Auto Now Wichita is your trusted buy here pay here dealership serving the Wichita area. Regardless of credit history, Auto Now Wichita buy here pay here dealership can get you into a great car day.