How do BHPH Lots Work?

When it comes to a Buy Here Pay Here Lot, you’ll find that they are pretty similar to your traditional dealership.

What’s the difference then? A BHPH has one significant difference that makes it a popular source to purchase a vehicle from for those who have less than perfect credit.

BHPH Lots Won’t Need Your Credit Score

Can I get Lower Payments on a New Car?

At Auto Credit Express, we know how difficult it can be to work with a credit score that has seen better days. That’s why we want to inform you of the benefits a Buy Here Pay Here car lot can offer you.

A BHPH lot means exactly that; you buy here and you pay here. This means that they do not need to depend on the third party loans. Instead you buy your vehicle directly from the auto dealership themselves. This means they don’t need to see your credit history to get you into a car, truck or SUV.

Because the BHPH dealers do not depend on your credit score to approve you, they’ll need other pieces of evidence to know that you’re able to pay your payments on time. Some of those things may include:

  • Proof of Employment and Income
  • Driver’s license
  • Possibly a Down Payment

Things to Be Prepared For

A BHPH car lot can offer you a great deal. However, with the good, there are some downsides as well that may make you consider BHPH alternatives.

  • Your Credit Score May Not Improve
    Because a BHPH does it’s own financing instead of through a bank or credit union, they don’t need to know your credit score. This is good if your credit is weak, however it will not help your credit at all.
    Since the financing doesn’t go through a major financial institution, your on time payments not are reported. Make sure you find out if they report to the three major credit bureaus.
  • You May Need to Make Weekly or Bi-Weekly Payments
    Oftentimes, these types of dealers will have different types of schedules. While traditional dealers expect a monthly payment, at a BHPH lot you’ll be expected to pay weekly or bi-weekly at the lot itself. This may be a little bit of a hassle if you live out of the way.

As We See It

When you have credit that is more like a heavy chain, a BHPH can be the answer you’re looking for. The key is to find the ones that are going to offer you the best credit repairing benefits.

At Auto Credit Express we can help! Our quick and hassle free online application will get you started today and will find you a reliable auto dealer in your local area. Get started today!

Posted on June 6, 2014 by in Bad Credit
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