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What Buy Here Pay Here Is


What Is Buy Here Pay Here?

If you've found that every other credit option for financing a car isn't an option anymore, a Buy Here Pay Here (BHPH) dealer might be your best option. Most people simply can't afford to purchase a car with cash. Preferably, we borrow money to buy a car from third-party lenders, such as credit unions, carmaker-associated lending companies, and banks. Traditional lenders may not be the best choice for you for a variety of reasons - such as little to no credit score or spotty credit histories, if that's your problem, there will always be BHPH dealers.

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What Does Buy Here Pay Here Financing Mean?

The definition of BHPH financing is arranging the loan and making payments on it at the dealership where you bought your vehicle. Because loan choices are made by your BHPH dealer, who wants to barter you a vehicle, favorable reception is usually guaranteed. If you have a steady income and an address, chances for approval are high. Granting you a loan, however, isn't usually out of the kindness of the dealer's heart; they will most likely make the same amount of money, or more, out of the financing, as they do on the car itself.


As a high-risk trader, you may want to expect a double-digit interest rate. It's helpful to find a dealer close to where you live or where you work because the BHPH dealer might find it vital for you to make biweekly or weekly payment trips to the dealership to pay in person, instead of mailing a monthly payment in. Although some will accept your payment by phone, online, or by mail. But most BHPH dealers want you to physically bring your payment to the dealership.


The Differences Between Traditional and BHPH Dealerships

Recently, the lines separating the traditional dealerships compared to the ones offering BHPH have been blurred. Some more traditional new-and-used car dealerships are starting to offer BHPH as a financing option. You may not see "Buy Here Pay Here" written across the cars' windshields, but the phrase "We Finance" is a good sign for BHPH. Instead of settling on a car and then talk financing, the BHPH dealer will first want to qualify the customer before determining how much they're going to want to lend.


Lastly, the dealer will show the customer which cars are an option for them to purchase, but the choices aren’t always limited. With BHPH, always ask the dealer about a late payment policy. Like, "Is there a grace period?" and if so "how long until repossession?". Make sure your contract evidently spells out how prolonged your grace period is between missing a weekly payment and repossession of the vehicle.


Who May Want to Go to a BHPH Dealership?

Your credit may actually be better than you think.  Try applying for a loan at your traditional lenders such as credit unions, banks, finance companies.  Only when they have all denied you, you should turn to a BHPH dealer for their specialized loan.


The Benefits of BHPH

• On-time payments can help you repair your credit history, but make sure that the BHPH dealer reports you payment histories to the credit bureau.

• They put the credit-challenged borrowers in a vehicle when the traditional vender won't.

• They purchase older cars and are willing to turn it towards the down payment of a newer car.

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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