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Explaining Buy Here Pay Here Financing


Explaining Buy Here Pay Here (BHPH)

Buy Here Pay Here(BHPH) refers to the used car dealers that sell vehicles and finance them, usually to the buyers with bad credit.

BHPH dealers usually sell older cars with higher mileage to customers with poor credit score. BHPH dealers offer vehicle loans with interest rates that are much higher than bank lending and market rates. BHPH dealers differ from the traditional dealers that request financing from outside lenders, with the customers making a payment to a third party. Although, some traditional car dealerships are starting to have BHPH as an option.

Liberty Cars and Trucks is not limited to selling you “older” cars. We have plenty of newer cars and trucks in our inventory that we’re sure you’ll love!

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Visit us at 3010 E. Bell Rd Phoenix Arizona and have a spin with one of our vehicles. Our staff is accommodating and friendly. They are also well knowledgeable on the cars and trucks in our showroom and our finance options. Come one, come all.

Come take a look at our Car and Truck inventory at our Phoenix AZ dealership.  We look forward to meeting you!

No Credit Check, No Problem

Most of the BHPH dealers finance and sell vehicles to their customers who have little to no credit histories.

They often advertise the no credit check auto loans and no credit, no problem. Dealers may offer to sell you a car with no money down or a small down payment on a car, with the amount of $500 or less. Buying a car, financing it and making payments directly to your dealer simplifies your purchasing process. But, loans from dealers offering you in-store financing may have a higher interest rate and require frequent payments. Some dealerships might require down payments that are high enough to cover the original price of the vehicle.


Advantages and Disadvantages of BHPH 

Banks and other auto loan lenders usually limit vehicle purchasing amounts on select vehicles, but a BHPH dealer providing financing might finance a vehicle above what a customer is willing to spend. And, warranties may not be offered, or it may carry an over the top deductible. Insufficient fund often results in BHPH dealerships going out of business more frequently than traditional car dealerships. A BHPH dealership might be cash-constrained if repayment plans are not met by many buyers - resulting in a shut down.

Appropriate payments on an auto loan can help enhance a customer's credit score, but BHPH dealerships might not relay the payment information to the major credit bureaus, so a customer's good payment routine wouldn't be included in their credit score. Because of the big risk in lending to someone with poor credit history, the dealer might install a device to track the vehicle or keep it from starting to help them repossess the vehicle if the customer misses a payment.

Options to avoid making a BHPH purchase include taking time to improve their credit score, with bankruptcy as an option or saving for a down payment. If one does make a BHPH purchase, one may refinance their vehicle at a better rate once their credit score is higher. They can also connect with a co-signer who has a good credit score, or they can seek a dealer offering cash back rebates.


Buying Made Easy

Our customers love the simple and seamless process it takes to get a loan at Liberty Cars and Trucks. We’ve made it so that it is easy and less complicated for you to shop for a vehicle and get an approved loan so you can drive away in your new vehicle. Apply online with our finance application and don’t be surprised if one of our staff members calls you immediately with the great news that you’ve been approved!

Despite whatever scary stories you may have heard regarding BHPH auto dealers, it is highly likely that the majority of what you heard was based on a misconception. Speaking with a reputable BHPH dealer is the best way to determine if it is the right option for you. Contact our finance department to discuss details about a down payment, monthly payment options, and loan terms. In the end, you will be pleasantly surprised at what we can offer you.

If your credit is suffering from financial mistakes made in your past, look no further than our Buy Here Pay Here Financing Department. We work with people like you who have less than perfect credit or no credit at all to ensure that you get a fair deal on a vehicle that you want to drive at rates that are relatively fair. The best way to find out about interest rates and payment is to contact our Finance Department to discuss your options. In fact, you can pick up the phone and Call 602 331-3333 and one of our Service Managers can have you behind the wheel of a vehicle sooner than you think. Our auto and truck Finance Office professionals are friendly and willing to work within your budget to find you a vehicle that best suits your needs.

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