A couple stands next to a buy here pay here dealership

Buy Here Pay Here Dealerships Explained

Milad Hassibi October 16, 2018


With an address and a job, you could qualify for an auto loan today! If you have had trouble getting approved for an auto loan in the past, a buy here pay here dealership may be your best bet.

What is a BHPH Dealership?

A BHPH dealership is a dealership that is also a lender, meaning there is no bank or private A thumbs up next to a buy here pay here dealershipfinancial institution involved.

You will most likely be required to come into the dealership yourself to make the payments each and every month.

What’s Different with BHPH?

With BHPH, the requirements to qualify for an auto loan are much less.

Most of these dealerships specifically work with buyers who have bad or no credit.

If you have multiple bankruptcies and no credit, there is a good chance you can still get a car from a BHPH dealership.

Most dealers will require a mass amount of paperwork to verify your credit, income, and address. With a BHPH dealership, the paperwork is a lot less.

Usually, all a BHPH dealership wants to see from you is a source of income, a down payment, and proof of address.

Working With BHPH Dealerships

BHPH dealerships do come with their own cons. For example, many of the cars being offered by BHPH dealerships are older with high mileage.

Since most BHPH dealership customers have bad credit, the dealerships like to minimize their risk of losing an expensive car.

Another con of working with BHPH dealerships is the exuberant interest rates charged on most of their loans.

In some cases, interest rates can be in the double digits depending on your credit score and other factors. If you have missed a payment by just 1 day, a BHPH dealership could be ordering a repossession.

Some BHPH dealerships may also require that you come in twice per month to make payments on your auto loan.

If you have been unable to find a loan you qualify for anywhere else, a BHPH dealership could get you into the car you need.

Final Note

If you are looking to buy a new car but have less than perfect credit, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!



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