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Useful Information For Buy Here Pay Here Financing Dealerships


What is a Buy Here Pay Here Car Dealership?

The way that Buy Here Pay Here (BHPH) car dealerships differ from the other used car lots is that a BHPH dealership will offer in-store financing.

If you're in bankruptcy, have bad credit, or no credit, you might find a BHPH dealership to be your best choice. Even though you don't need financing, or you have good credit, a BHPH dealership still offers amazing deals on any certified pre-owned vehicle.

While BHPH financing may be your only way to acquire a vehicle, be sure to look carefully and also make a carefully planned decision in advance.

BHPH companies have to respect stricter rules since they are also a financing company. Any BHPH company that does abide by the State and Federal Rules and Regulations will soon be out of business.

For instance, all BHPH companies have to abide by the Truth in Lending Act (TILA), which calls for the financer or the dealer to reveal the final cash price, which is the amount financed, in addition to any other important information for the customer to shop and compare.

Other rules and regulations they must follow include the State Usury Laws, Fair Debt Collections Practices Act, and the Fair & Accurate Credit Transaction.  This is to allow for a smooth and honest transaction between the buyer and dealership.


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The BHPH Pros


In-Store Financing

One of the first evident advantages of BHPH dealerships is the capability to purchase and arrange loan payments at the same time. So rather than getting an auto loan at a bank or a different third party, you'll be able to get everything finished at that dealership.

Your payment plan could either be weekly, biweekly or monthly. Many times a BHPH dealer will be able to match up pay dates with your job so that way it is as trouble-free as possible to make your payments on time and raise your credit score.

If you have little to no credit or are in post-bankruptcy, getting a loan approval can be tough. While the annual percentage may rely on your credit score, a BHPH dealer accepts all credit circumstances including little to no credit. This can be an amazing way to build up your credit score.

Don't listen to the people who are saying you'll be paying 30% or more on interest or the largest amount allowed by the law. Most BHPH dealerships offer interest rates varying between 15% to 20%.  Transaction details will be distinctive so be sure you examine all of the paperwork before signing any agreements.


The 48-Hour Return Policy

When you purchase from a private seller, you're giving up the chance to return your vehicle if you aren't pleased. On the other hand, when you buy a car for a BHPH dealership, you're given a small period of time to return your vehicle.

At many BHPH dealerships, a full 48-hour refund return policy is always included with the purchase of your vehicle. Be sure to go over this information with the dealer before signing anything. No-Return policies shouldn't be an issue.

The 48-hour time limit should be enough time to test your vehicle on a variety of different roads and compare it to other vehicles and deals. There is absolutely no commitment to agree to the offer if you're within the 48-hour time period.


Buy Here Sell Here

By selling or trading in your vehicle, you save time and money.

Carfax Reports

Another advantage of a BHPH dealership is accessibility to a free Carfax report on every in-stock vehicle.

Certified Pre-Owned Vehicles

A Certified Pre-Owned vehicle is one that has gone through a full inspection and any required repairs stated by the automaker. A CPO vehicle is often in a "like-new" condition. They might cost more, but normally come with roadside assistance and additional warranties, and that is one of the main reasons why it's smart to buy from a BHPH dealership.


Most of the used car dealerships offer warranties on used vehicles. This comes in addition to any of the original manufacturer warranties.

Quick and Easy Processing

All BHPH vehicles are usually in a database that is connected to the DMV for a fast and smooth transaction. BHPH dealers might also be able to work with you to get rid of any existing loans you might have taken out, this usually depends on the lender, location, and other factors.

Although you might have to sign on a few dotted lines, all the paperwork is usually handled by the dealership.


Buy Here Pay Here Financing Cons


The Limited Inventory

Although BHPH carries a variety of vehicles, you're restricted to what they have in stock, so shop at the online inventories and call before making the trip.

Larger Interest Rates

If you have good or amazing credit, a different lender will most likely provide you with a lower interest rate than a regular BHPH financer. Whenever you acquire your loan, be sure you take the information home and study it carefully before you agree to sign anything.

Remember, contracts are most likely stay in effect for years. We recommend that you search from a dealership online with the Better Business Bureau or any local consumer affair office. Also be sure to check the company's online testimonials and how long they've been in business. You're basically going to do your research before actually going to the company. You'll have no problem finding the vehicle you want at an affordable price.

The Hidden Fees

Not all of the dealerships are upfront about the total costs involved with your transaction. Don't assume that dealers will tell you all this information. Be sure to read the paperwork and check for:

• Delivery fees

• The price matching the price that you had originally agreed to

• Detail or inspection fees

• Handling and administration fees

Be certain about how much your payments are going to be, how much the interest is, and when your payments will end. An important thing to take notice is the fact that your BHPH dealership may not report your payment history to the Credit Bureaus. While most of the dealers will automatically submit your payment information to the credit agencies, don't assume that this is going to happen. Make sure to ask the dealership what their policy is on credit reporting so you can begin rebuilding your credit.

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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