Drive Now, Pay Here: The Benefits of Buy Here Pay Here Dealerships
Accessing your dream car is not as easy as it seems. People view it as financial hurdles and endless bad credit and checks. It only worsens if you have poor credit or a bad credit score.
However, that’s not the only option for people who wish to own cars despite having bad credit.
Buy Here Pay Here dealerships, alias (bhph dealerships), have streamlined the process of owning your next car.
The revolutionary concept has numerous advantages, from helping you build your credit status to offering more loan amounts and flexibility in the auto loan environment.
This article discusses everything you need to know about buy here, pay here dealerships, and the benefits it offers above ordinary auto loans.
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How does buy-here, pay-here financing work?
Buy here-pay-here financing streamlines car purchases by offering a way to finance your vehicle right from the dealership!
Once you get to the dealership, you’re offered an auto loan equivalent to paying the vehicle’s price. The pay-here-dealership won’t have to check your credit history for you to qualify for loans.
Once you’ve agreed on the car dealer and loan terms, you can finance your car purchase and walk away with your new or used car.
Bhph dealerships also accept people with a bruised credit history or those building very low credit scores.
Why Choose Buy Here Pay Here Financing?
- You're in control: You check the cars in their inventory and pick the one that fits your budget.
- Credit Checks Aren't Necessary: Bhph dealers don't put much consideration to your credit history. They mostly focus on your ability to make timely monthly payments.
- Loan approval is fast: The loan approval report requires you to enter demographic information, including your house location. It's a higher risk for them if they don't know your location.
However, the process is usually swift.
- Shorter Payment Months: People who sell vehicles aren't looking forward to making those end-of-month phone calls trying to follow up.
Buy Here Pay Here Dealers (How to Pick the Best)
Securing the best buy here pay here car dealership is not a walk in the park. Here are some of the most important factors to consider when choosing a buy here pay here car dealer.
Website
Since your search will begin on the internet, it’s essential to ensure that the buy here pay here dealership you wish to work with is valid.
Not all car dealerships on the internet are legit. Don’t fall for scammers!
Ensure they have an about us section on their website where you can find all information on contacting them.
Read through their customer reviews and determine if they’re worth your investment.
Down Payment
How much down payment will you pay for your auto loan at the bhph dealership?
Giving a vehicle a huge down payment ensures you save money with your monthly payments. Even a zero-down car loan option will be appropriate if you’re running out of credit and need a low-down car loan.
Few bhph dealers and banks will give you a zero down payment auto loan. However, that only attracts huge interest and monthly payments.
Ensure your down payment makes it easy to commit to monthly payments.
Interest Rates
Unless you pay cash at the car dealership, you buy your car at some interest rate.
Every lender has a fixed interest value on financing their auto loan, so you’ll be presented with numerous financing choices.
Go for paying a lower interest rate with a car loan, as it is easier for borrowers to manage.
Pro Tip: Go for a decent used car to save good cash on your auto loan. Used cars are lower-priced than the new ones and have lower interest rates when you strike a bhph dealership deal.
New cars are more expensive, and their auto loans will have higher interest rates.
Vehicle History Report
If you’re seeking a used car, it’s crucial to investigate further details before purchasing. You must be aware of the vehicle’s history to avoid future problems.
Most bhph dealers don’t offer the service at the dealership, but in many states, they occasionally use third-party resources to get you the vehicle history.
Warranty
A car loan is a huge investment that needs warranty protection.
Most bhph car dealerships dealing with used vehicles don’t have a convincing warranty program.
Nonetheless, new and almost-new vehicles might still have their original warranties. Check out different car loan lenders and see which one’s warranty works well for you.
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Pros and Cons of Buy Here, Pay Here Dealerships
Buy Here Pay Here dealerships have their share of pros and cons.
Why should you choose to Buy Here Pay Here dealerships?
- Accessibility - Buy Here Pay Here deals are loved for their accessibility. Borrowers don't need to undergo a credit check to qualify for a loan. If you've been facing challenges being approved for a traditional auto loan, a bhph dealer might be the only option.
- Convenience - Bhph dealers ensure the whole process is handled from a single point. Unlike the traditional lender who might have to run you through a process, bhph deals are handled in minutes. You can even receive your new or used car at the convenience of your house.
- Rapid Approval - Your auto loan will be processed in minutes! You won't be waiting at the dealership for long.
Reasons Buy Here Pay Here Dealerships Might Not Work for You
- Higher Interest Rates - High interest rates mostly characterize bhph deals. That's mainly because most of them won't require you to put a down payment on the auto loan.
That means the lender will set up high-interest rates to recover the money they loaned to you fast.
However, it is advisable to check out used cars, if you need slightly lower interest rates.
- Shorter Loan Terms - Buy here pay here financing can be expensive, owing to its shorter loan terms. Lenders will be willing to work with you for up to 36 months. However, if you ensure a great payment history at the end of the loan repayment, you're up for a better credit status.
Is buy-here, pay-here financing a good idea?
Yes. Buy here pay here financing is a great idea, especially if you suffer from poor credit. Again, it offers more convenience than your traditional auto loan and, most certainly, has faster processing.
How Do Buy Here Pay Here Dealers Repossess Your Car?
If you don’t or stop making your monthly payment on time, car dealers may be forced to repossess your car.
Again, since they lend to riskier borrowers, expect some of them to be aggressive about it, or even install a tracking device to your vehicle so they can switch it off remotely.
Are Buy Here, Pay Here Cars Worth it?
Yes! Buy Here Pay Here cars are worth it. They offer convenience to buyers with bad or poor credit who need a simple loan for a used car.
They don’t have those extraneous credit checks, making them particularly good for people building credit or needing fast approval. Moreover, everything from the financial planning is done by the bhph dealerships.
Does buy-here, pay-here financing go on your credit?
Yes and No! A buy-here-pay-here car dealer might not need to report you to the credit union about your loan repayment. Your credit score will remain untouched.
Nonetheless, some lenders might submit your credit check and information to collection and credit unions to regain their money.
However, your income and credit score will improve if you make your monthly payments on time. By that, any lender will feel secure giving you an auto loan in the future.
