If you have some income and an address, you can get into a car! If you have been turned down by other dealerships and subprime lenders, a buy here pay here dealership could be your savior.
What are Buy Here Pay Here Dealers?
Buy here pay here dealerships (BHPH) are an option for consumers who have had no luck getting an auto loan. BHPH dealers are exactly what they sound like: dealerships that will finance the car for you in-house, meaning that your payments go directly to them. They do not go through a conventional bank or financial institution and will qualify you on their own terms.
Buy Here Pay Here Dealership Requirements
A BHPH dealership has much different requirements than a conventional auto loan. Since getting a conventional auto loan from a lender can be a long time-consuming task with heavy documentation, many consumers will not qualify.
BHPH dealerships have very little regulation on their requirements to finance you, so your chances of approval can be much higher.
Often times, all you will need from a BHPH dealership is a “steady” form of income, a down payment, and an address. Some Buy Here Pay Here dealerships will not require an address either.
Most BHPH dealers will ask you to bring in a months worth of paystubs, your identification card, and a utility bill to prove your residency.
If you are debating about working with a Buy Here Pay Here dealership, there are a few key points to keep in mind. First and foremost, the selection of cars available at a BHPH dealership is minimal compared to an average used car dealership. Many of the cars on the lot are high mileage vehicles that are over 10 years old.
Another point to keep in mind is the interest rate charged on the loan. BHPH dealerships are well known for charging astronomical interest rates, often at double digits. Since many of these dealerships do not perform a credit check, they do not base your interest rate off your credit score at all.
Payments are also usually made at the dealership as well, possibly adding a drive to your commute each and every month.
BHPH dealerships are also known for repossessing cars in a heartbeat. We have heard horror stories of payments being made 1 day late, only to result in a repossession of the car along with a massive dent in the applicant’s credit score.
If you are looking at a BHPH dealership, proceed with caution. Although a Buy Here Pay Here dealer certainly offers many benefits, the cost can outweigh the pros for many. If you are looking to buy a new car but are in need of financing, 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!