If you don’t have a good credit rating or have a bad credit history, buying a car can be difficult. Even though you might not have access to traditional financial sources, there may still be a way. For those who cannot access traditional financing but still need a car, Buy Here Pay Here (BHPH), dealerships offer a great alternative. What is buy here, pay here near you, more bonuses?
The dealership offers financing to customers who might otherwise have difficulty getting accepted by conventional lenders. BHPH dealerships are often able to work with people with all credit types, including those with poor credit or bankruptcy.
A BHPH dealership offers convenience as one of its main benefits. BHPH dealerships offer financing in-house instead of traditional financing where you need to apply to a bank loan or credit union loan. This allows you to finance and purchase a vehicle in one location.
However, BHPH financing has its drawbacks. Because they deal directly with high-risk clients, BHPH shops can charge higher borrowing costs than conventional lenders. BHPH dealers might sell older, more-mileage vehicles that traditional dealerships. BHPH dealerships offer extended warranties and maintenance programs to help mitigate some of these risks.
Before you engage with a BHPH Dealer, research is key. It is important to understand all terms and rates in the financing agreement. You should also find out about any fees or charges associated with loans, such as late payment fees and prepayment penalties. Research the dealership’s reputation using internet reviews and referrals by family and friends.