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What Are Buy Here Pay Here Car Dealers

If you have been shopping for used cars for a while or been driving by a few used car lots in your local area you might be seeing buy here pay here car advertising. But never really have known what it is or if it’s good for car buyers?

Simple financing for vehicles with bad credit.
New Vehicles
Auto loans for bad credit or poor credit.
Used Vehicles
Auto loans for bad credit or poor credit.

What buy here pay here car lots?

Buy here pay here or BHPH car lots simply put are car dealerships that will finance the purchase of the used car instead of you having to get any outside auto lenders’ assistance. These car lots are also considered in-house financing car dealers.

Many car dealerships use third-party auto lenders to offer the correct financing for used cars basically the car dealer gets a cut of the interest paid on the auto loan thanks to the car dealership bringing them the loan customer. But the auto lender takes on all the paperwork of selling the used car.

Some car dealerships will choose to take on auto financing instead of having an outside financing company handle it.

Buy here pay here car dealers are for risky car buyers

These are Buy here pay here car dealers and they often work with car buyers that have bad credit to poor credit and want a car loan. The BHPH car dealer also will work with no money down cars or down payments which may be a little riskier for the car dealership.

Buy here pay here car dealerships that finance on their own may charge higher interest rates than other financing companies.

There are about three ways to best finance a used car

  1. You can go get an auto loan from a bank by filling out the auto loan application and waiting for approval. The bank will then give you the money to take to the car dealership to buy the car. Then you pay the auto loan back to the bank.
  2. You can finance through the third-party auto lenders that the car dealership has most new car dealerships and used car dealerships offer this as an option.
  3. Going through a buy here pay here car dealership near you can work and they will finance and do all the paperwork then you pay the auto loan directly to them.

Doing this kind of car buying depends on your car needs and what you can do for a down payment for financing because a lot of used cars don’t have $0 down car payments offered on them. Not to mention you normally need perfect credit to be considered for $0 down car payments at some car dealerships.

If you have a down payment and good credit the car dealerships’ auto lenders will probably offer you the best interest rate they can on the cars. It’s always good to have three offers to compare to what the car dealership is offering so go to the bank you have been with for a while and see what they can offer you.

Have low credit for used cars

With a low credit score and no down payment, a buy here pay here car dealer will probably be your best choice because they can offer cars with $500 down payments on used cars in Indianapolis or $500 down on used cars in New York, and $500 down cars in Chicago.

Buy here pay here car lots are around to offer you different auto financing options you may not see at big car dealerships or another financing you may not qualify for.

Choose the best financing

Regardless of what financing you choose make sure you have the financial means to cover the cost of a vehicle and shop around used car inventories to find the car that’s the best fit for you. Don’t just buy a used car because the financing is good.