For reasons that many people don’t understand the credit markets have changed and these changes have made the need for buy here pay here car dealers a reality. It wasn’t too long ago that people with poor credit could get an auto loan if they had a substantial down payment. However the rules have changed and those people are unable to qualify for a traditional or even a sub-prime auto loan. Since people still need vehicles to live in the modern world the Buy Here Pay Here (BHPH) car lot is the only alternative.
Buy Here Pay Here Car Dealers vs. Traditional Car Dealers
Most people are familiar with the traditional car dealer in that the dealer sells the new or used car and they arrange financing through a third party lender. The buyer must have a sufficient credit score and history to qualify for the auto financing along with a job or steady source of income that is sufficient to service the automobile installment loan. If the credit applicant cannot meet the qualifications they will be refused credit to buy the car and they would be without a vehicle.
This is where the buy here pay here car dealer comes in. They operate a business that works just like the name implies, the customer will buy here and they will pay here. This non-traditional type of car dealer caters to the customer with poor or bad credit that is unable to qualify for automobile financing at the traditional car dealership. The BHPH car dealer offers in house financing that does not require the buyer to apply to a third party for an auto loan. Basically the car dealership is selling and financing the vehicle.
The BHPH Car Buying Solution
Buying a car from a buy here pay here car lot is not the most economical way to buy and finance an automobile, but it might be the only way you can get a car unless you are paying cash. The BHPH dealership specializes in helping people that have credit problems caused from job loss, medical bills, divorce or anything else purchase and finance automobiles.
Your first step would be to visit a buy here pay here car dealership in your area and talk to a specialist about you auto needs. The in house financing offered by BHPH car dealers is not a rigid as a traditional auto loan in that the car payments and terms will be tailored to your financial restrictions, requirements and ability to pay. Typically payments are made weekly or bi-weekly at the dealership in person. Many find it to be much easier than one larger monthly payment. Most dealers that offer in house financing also work with sub-prime lenders and will be happy to try and get you a standard auto loan, but if it does not work out the buy here pay here car financing is the solution.