If you don’t know what a buy here, pay here (BHPH for short) dealership is at this point in time, you’ve been living under a rock. Or, you’re a young’un looking to buy your first vehicle. Whatever the case, it’s highly unlikely you’ve gone your entire life without at least hearing the name, which was most-likely quickly followed by a curse. They did gain a bad reputation when they first came about — like most car dealerships — as a place where their only interest is to screw you outta money. But, it’s 2016. At this point in time, there have been many rules and regulations set in place that help protect both the consumer and the dealership.
So, is a buy here, pay here dealership still something to be wary of in this day and age? In a general sense yes, but don’t avoid them completely because their importance in the automotive world is hugely overlooked. Rarely do they get the credit they deserve.
Be Wary of Any Dealership
You should be wary of any dealership, to be perfectly honest. While most of them are out there to truly help you, there is still a smaller percentage just looking to get ahold of your bank account and soul. Just like people, there are those you can trust, and those you can’t. It’s just how life seems to work, sadly. Therefore, unless a close friend you know tells you about a dealership — whether it’s BHPH, new, or used — and you cross-reference that opinion with positive online reviews; don’t completely trust them until you go there and experience the dealership yourself.
While you should be wary of any type of dealership, that doesn’t mean you should go in with a negative mindset. Or automatically assume they are going to try and mess with you. Just pay attention and listen to your gut, especially at a buy here, pay here dealership. Because for some, you don’t have a choice. This is the last place you can get a car.
Their Importance is Hugely Overlooked
Why is the importance of buy here, pay here dealerships hugely overlooked? They are the last hope for consumers who have abysmal credit scores. If you’re sitting in the 700 range, you won’t be going to one of these because BHPH dealerships are for those with subprime credit.
Why don’t all new car dealerships, used car dealerships, or banks and credit unions provide approval for bad credit consumers? Because, these consumers are a financial risk. If a consumer has a low credit score due to financial instability or irresponsibility, then there is a chance they’ll default on a car loan. This not only causes a hassle for the lender and dealership, but also requires money to repossess the car. Since BHPH dealerships do everything in-house — including financing — the risk they take only affects them.
They are there as a last resort for those with bad credit – allowing people who can’t get a car anywhere else, purchase a car and put their lives back on track. While you should be wary of them, don’t hop on the bandwagon of hating them without provocation. Why? Because, they deserve a lot more credit than that for the risk they take.