A Buy Here Pay Here (also known as BHPH) dealer is a dealership that sells you a car and handles the financing. In other words, the dealer offers the loan directly, usually underwritten by a financing institution. These dealers generally specialize in used cars for people with a bad credit score. When it comes to repaying the loan, you will have to physically go to the dealer as frequently as every week. Most BHPH dealers do not accept payment by mail. Rather, they want cash or even money orders.
Before approaching a Buy Here Pay Here dealer, it is advisable to apply for your own car financing through a bank, online financing or even your local credit union. Don't assume because of some bad past credit records that you will be automatically denied financing. You may be pleasantly surprised. But when you get the bad news that you can’t get a loan, you can now consider approaching a BHPH dealer. If you are interested in getting a car loan from these dealers, here is what you can expect.
What Is A Buy Here Pay Here Dealer: What To Expect
A good dealer should report your payment record to credit reporting bureaus. Some of them are not going to do this since improving your credit scores is none of their business.
You will have to choose what is on the car lot. BHPH dealership is not about getting the car you want but what you can afford. Therefore, you better look for a dealer with a wide variety of cars to choose from, such as LocalBuyHerePayHere.com/Atlanta if your in the Atlanta area. If not they have many dealers in most major metropolitan cities around the country.. However, make sure you have the car inspected before putting your signature on the dotted line.
The dealer will determine the amount of your loan payments. Financing will be discussed upfront because the dealer wants to understand your financial situation before showing you the cars you can afford. This is a sharp contrast to the process at regular car dealers where you choose a car and discuss financing.
Some BHPH dealers always keep track of their client’s location by fitting an electronic tracking device on the car. This is just a precautionary measure for rogue clients who fail to honor the loan payment terms. Some dealers even install ignition shutdown technology in the car. To be on the safe side, it important to learn the late-payment policy of the dealer. Less reputable dealers are just interested in your money and may be willing to disable and repossess your car. Don't hesitate to ask the car dealer any burning question you may have.
Contrary to popular perception, not all BHPH dealers are bad people. While some charge unreasonably high interest rates to exploit clients, others are genuine business owners who are determined to serve a market that many lenders don't want to.
There are many BHPH dealers out there and so ensure you choose a dealership that offers attractive terms. If you detect any sign of a potential rip off, simply walk out the door and continue with your search.So if you are always asking yourself, “What are buy here pay here dealers?” Now you know.
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