Buy here pay here (BHPH) car lots are a type of in-house financing dealership. These places can be an option to get an auto loan if you have bad credit or no credit. You may have seen some of these lots around your town, but you may not know which to visit or how to qualify. This buyer's guide can help you find the right BHPH dealer for you and explain the requirements to expect.
Guide to Buy Here Pay Here Qualifications
Although buy here pay here dealerships work with credit-challenged consumers like subprime lenders, their requirements differ, and are generally simpler.
The biggest difference between the two is that many BHPH dealers don’t check borrowers’ credit when determining loan approvals. This means that what’s listed on your credit reports and what your credit score is typically doesn’t matter to them. This is good if you have bad credit or no credit.
The reason why these places don't run credit checks is because they are also lenders, offering in-house financing for the vehicles on their lots. Because they're giving the loan, they aren't beholden to the stricter requirements of subprime lenders.
Most BHPH dealerships are only concerned with your income and ability to make payments. The two general requirements you must meet with a BHPH dealer are:
- Have a qualifying income – How much of an income you need varies by dealership. Expect to be required to make around $1,500 a month before taxes in order to qualify. You’re allowed to have multiple jobs or sources of income to meet the requirement. You may be required to bring in a recent paycheck stub to serve as proof of income.
- Provide a down payment – Buy here pay here dealers usually require a down payment. The amount of money down you need depends on the cost of the car you're financing, so it can vary widely.
Some BHPH dealerships require you to provide proof of residence as well, usually with a recent utility bill in your name. This is to make sure you live where you say you live and so that they know where the vehicle is parked.
When it comes to making payments, BHPH dealers may offer monthly, bi-weekly, or even weekly payment schedules. In the past, most of these places made you come in and pay, but many BHPH lots are now accepting online payments.
Buy Here Pay Here Vehicle Expectations
You’ve got the requirements down, but what kind of cars can you expect when you set foot on these lots? First things first – you’re not going to find any new vehicles. BHPH car lots sell used vehicles, and most dealerships have a wide variety to choose from.
Some are going to be newer used models in excellent condition, but don’t be surprised if you see a number of five- to 10-year-old cars, too. Make sure to have any vehicle you're considering inspected by a certified mechanic before you buy – it's better to be safe than sorry.
Find a Buy Here Pay Here Lot Near You
If you’ve been considering working with a buy here pay here dealer but aren’t sure which one to go to, Auto Credit Express wants to point you in the right direction. We work with a nationwide network of special finance dealerships that includes buy here pay here lots.
With our help, you can be matched with a local dealer that’s right for you. There’s no obligation to buy anything, and our service is always free. Fill out our car loan request form to get started right now!