What is buy here pay here financing? Pros and cons of BHPH

Many consumers who are having a difficult time getting financing from traditional lenders will look at buy here pay here dealerships as an option.  For those not familiar with buy here pay here, it’s similar to the typical used car dealership except that everything is upfront and in cash.

The finance manager or salesperson at a buy here pay here dealership will go through all of the paperwork with you during your test drive so there’s no need to come back for another visit.  Since you’re already giving them all of your financial information and personal information, they may offer you a better deal than what you would find at a regular dealership because they don’t have to worry about bad credit affecting their chances of making money on the sale.   

With some dealerships, they will basically give you a vehicle for free if your trade in is worth less than what you owe on it. This type of deal can only happen when the dealer has money from somewhere else because lets be honest, most people don’t want to keep their old car and buy another one at the same time. The reason why BHPH dealers do this is because they know people need vehicles and don’t have “all cash” available to them. By trading in an old car or truck it means that normally, all they would need to finance is the difference between their current loan amount and the new vehicles price (plus other costs like DMV fees etc.).

Most of these bad credit auto lots will not check your credit score if its under 600 which is great news for those with no credit or bad credit. If they do check, its most likely going to be a soft inquiry which won’t hurt your score too much. Again, you just have to show your seriousness about getting approved and driving a car off of their lot.

Questions? Comments? Let me know! I wish you the best of luck if any of this information was useful to you in any way, shape or form. Good luck on your future buy here pay here financing ! You’ve completed Part One of our informative guide on how to buy a car from buy here pay here dealerships even if you have negative items showing up on your credit report! We hope that you enjoyed reading this article as it contains important knowledge about buying cars with bad credit or no credit even if you have a bankruptcy.

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