If you’ve got a job and a place to live you, too, can get a car loan! When you’ve been turned down for an auto loan, and don’t know where else to look, a buy here pay here dealer could be your answer.
What is a BHPH?
Buy here pay here (BHPH) car lots can be a unique option for people who feel they have no choices left for an auto loan. BHPH dealers finance loans in house – they do the lending themselves. This truly makes the car financing and shopping process a one-stop experience. In fact, you’ll generally make your car payments right there at the dealership, as well.
Why Are My Qualifications Different?
The requirements for getting an auto loan from a buy here pay here dealership differ from those at second chance car lots. Subprime lenders, or second chance lenders, can often help people who suffer from credit issues by looking beyond their credit to approve them for financing.
Due to the requirements needed to get a car loan through a subprime dealer, not everyone will qualify for one of these loans. This is where BHPH lots can really come in handy. Buy here pay here lending rules aren’t as strict, so it can be easier to qualify for financing when you need a vehicle.
Typically, all you need to qualify for an auto loan with a BHPH dealer is a steady income, a down payment, and proof of residence. In some cases, depending on the dealership, you may only be required to provide proof of income and a down payment.
What to Expect From BHPH Dealers and Vehicles
There are some key points to remember when you’re financing a vehicle from a buy and pay here car lot. Though it’s often possible to drive away from a dealership the same day in a used vehicle, you may find that the selection of cars is smaller than at regular dealerships. Vehicles at BHPH lots tend to be older model used cars, often with higher mileage.
Another thing you can expect as a trade off for fewer requirements is the cost of the loan. Buy here pay here dealers often charge double digit interest rates, regardless of your credit. Lastly, you can sometimes expect to have to make payments on a weekly or bi-weekly basis, rather than monthly. These payments will most likely have to be made in person at the dealership, too.
Before You Head to a BHPH Dealer
Just because you’re struggling with poor credit doesn’t mean you have to check out a buy and pay here dealer to get a car loan. You might be surprised by how much a subprime lender can do for you. If you need a vehicle, but don’t know where to turn, let Auto Credit Express help guide you.
We work with a network of special finance dealers from coast to coast that work with lenders who can dig past your credit challenges to help get you approved for a car loan. It can be frustrating to figure out where to go, but with our help, you can be matched with a local dealer that’s right for you. There’s no obligation to buy, and our service is always free. Don’t hesitate any longer – fill out our auto loan request form to get started today!
