5 Things You Need to Know About Buy Here Pay Here Dealers

Buy Here Pay Here Dealers

Are you at a point where you badly need to buy a car right now but you don’t have enough budget to make the purchase? The Buy Here Pay Here Dealers might be the best option you are looking for.

Buy Here Pay Here may be your last resort if all other credit options for purchasing a vehicle is no longer available for you. The BHPH financing refers to the process by which you apply for the loan and pay for it at the exact car dealership where you will be buying your car. It is like a financing company and car dealer in one. You won’t have to approach other lenders to lend you money for your auto purchase.

The good thing about BHPH is that your loan application has a higher chance of getting approved because the loan approval is being made by the BHPH dealer. The most important thing is that you just need to have an address and a steady stream of income to afford your monthly dues. And when it comes to the monthly payments you may be required to pay in person so it is much better if you look for a BHPH dealer near you. Now, if this option is something that you consider for your next vehicle, it pays to do a little research.

Here are some of the most important things you need to learn about BHPH before finally making a decision.

1. You need to check the state of your credit

It will be best if you have an idea about your credit rating. This way, you will have a hint on what to expect when you apply for the loan. It will also help if you request for your credit rating ahead so that you can have plenty of time to review and file for disputes if there is anything inaccurate.

2. Make sure that everything is final before you drive your car home

While this is a rare instance, there are some dealers that play the “yo-yo trap” where the customer gets to bring home the purchased car and after driving it for weeks, they will be informed that something went wrong with the application. And then, the dealer will be requiring you to pay for an additional amount or you will have to return the vehicle. So don’t get tempted right away if the BHPH dealers tell you that you can get the car right away, Make sure everything, especially the amount is finalized before you sign anything and before you walk away with your keys.

3. You cannot hide your past credit problems

When you apply for a loan with BHPH, you need to expect that they will find out everything pertaining to your past credit problems so don’t bother hiding them. If you will be interviewed, be ready to explain yourself when it comes to your misses or delays or failure to make payments.

4. Choose the car that you can afford

Even if you will be able to get approved for a big amount for your car loan, you still need to carefully choose the kind of car that you can afford. You may be able to purchase a pricey car with your loan but think about the monthly payments. You need to consider if your monthly budget will be able to afford it, as well as the other expenses for the car like the maintenance, fuel, insurance and repair. If you are lucky, some dealers will offer you warranty or vehicle protection plans.

5. You need to prepare for the down payment

Even if you are applying for a loan with BHPH, it will still help you a lot if you are ready for the down payment. If you can afford to pay a bigger amount for the down payment, the interest rate will also be reduced and that means a lower price for the car.

6. Consider the length of the loan

When you decide for the terms of payment, you need to think about the total car price that you will reach. The longer the loan, the higher the interest rate and it means a more expensive car. Don’t be deceived by lower monthly rates.


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