The industry’s leading Buy Here Pay Here car dealerships are listed here on this site to help those with bad credit get an auto loan.
Even with public transportation in the largest cities, in many places it is very difficult for people to get by without their own vehicle. However, cars are expensive and most people aren’t going to buy a vehicle just out of their wallet. They are going to need help financing the purchase and that means trouble for individuals who have bad credit scores or a bankruptcy in their recent past.
When a bank or credit union isn’t a realistic option, then it’s time for a buyer to look at Buy Here Pay Here dealerships. These are often referred to simply as BHPH (Buy Here Pay Here), and these are auto dealerships who are willing to extend credit themselves for a contract and help fund car purchases for people who otherwise wouldn’t be able to afford one. This is a fairly common practice, and most cities are likely to have at least a few different dealerships that offer this particular option.
What Are The Benefits Of Buy Here Pay Here Dealerships?
The benefits are obvious for someone who has a poor credit history. They need a car to get and keep a job, to shop for groceries, and to simply get around and function. A BHPH dealership actually provides an option for people who don’t have enough saved up for a brand new car and don’t have the type of fine credit they would need in order to buy a car through normal means.
Since the dealership is taking the risk with extending the line of credit and creating the contract, they have the ability to offer credit to people that banks and credit unions can’t. Sometimes this is the only practical solution for a person to be able to buy a new or (often) used car that can reliably serve all of their transportation needs.
What Are The Drawbacks Of Going Through A Buy Here Pay Here Provider?
There are some drawbacks. Since these lines of credit don’t go through a regulated financial institution and since the people buying will most often be high risk, the interest rates on contract loans will be much higher. This means a lot more money will be paid over the lifetime of the loan in addition to the higher monthly payments to boot.
Since most the vehicles that are going to be found at BHPH dealerships are going to be used cars (this isn’t always the case but it does hold true for the majority of them), the normal caveats come with used cars when it comes to mileage, quality, and upkeep. This is why looking up the reputation of various car dealerships is so important before making a purchase – you want to be sure you are dealing with someone reliable.
Buy Here Pay Here Dealerships, In Conclusion
These dealerships offer a high in demand service. While people with good credit scores and cash on hand might get a better deal from other types of dealerships, buy here pay here’s serve an important role for people with poor credit history and helping them to get the running vehicles they need for modern life.