Car Buyer Labs

Car Buying Advice, Tips, and Reviews

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Buy Here Pay Here Financing: What You Need to Know

It’s time for a new car. Your current ride is making an unintelligible clunking noise, its cabin is far from comfortable, and the overall quality of the drive is a lethargic disappointment. Yet, buying a new car amid your current financial situation may feel like a faraway goal—something you won’t be able to achieve until you get your credit score back to a respectable level.

The good news is that you won’t have to wait for your credit score to improve (which may take years) to buy a car that offers you a dependable and safe ride. There are Buy Here Pay Here (BHPH) dealerships that can help those struggling with their credit to afford a car they can be proud of, one that won’t make for an unsafe or unreliable ride. Everyone deserves to travel in a car that satisfies their needs, regardless of their finances; with BHPH dealerships, these drivers will have the opportunity to improve their overall situation behind the wheel and then some.

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What Is “Buy Here Pay Here” Financing?

If you’ve ever gone through a dealership to purchase a vehicle, chances are you’ve been through the financing process. This process can get a bit stressful, especially if your credit situation isn’t the best, but don’t worry. Traditionally, dealerships work with a network of outside lenders to find the best rate and payment plan to match your financial situation. At a BHPH dealership, you will be offered the chance to take out a loan not from an outside lender but from the dealership itself. This way, the financing lies entirely within the dealership, from the initial purchase to the budgeted payment plan—there’s no middleman required.

This works out for those who have found themselves in a less-than-desirable situation, especially if their finances have become unmanageable and their credit score has gone by the wayside. Instead of spending years trying to improve your credit score, all the while traveling around in a vehicle that’s outdated and unreliable, you can afford a new vehicle that can maximize your travels. Not every dealership offers BHPH financing, which is why it’s important to find professionals who specialize in this type of vehicle financing so that you’re able to enjoy the best results.

Advantages of Buy Here Pay Here Financing

The biggest advantage of BHPH financing is that, regardless of your financial situation, you can get approved for a vehicle that works for you. There won’t be any guessing games about whether or not you’ll be approved. BHPH allows those challenged by their credit to bring home a better-suited vehicle for a price that works with their budget.

BHPH dealerships will craft payment plans that work for their customers, helping them finance a car within their budget so that it’s not a hassle to meet their monthly payments. By working with professionals who understand BHPH financing and frequently work with BHPH customers, you’ll be able to find a vehicle that satisfies your parameters, allowing you to drive home in something beyond a simple go-machine.

It’s cathartic when all your vehicle needs converge in one place. This is another advantage of BHPH financing, as you won’t have to worry about paying an outside lender; instead, you’re paying the dealership. This also helps you establish rapport with the dealership and, over time, trust. By having a dealership take a chance on you by offering BHPH financing, you’re working on improving your credit situation, showing credit bureaus that you can be trusted to pay a loan regularly and on time. It is a significant accomplishment when a loan has been paid in full—one that will have a definite impact on your credit score, allowing you to qualify for better loan terms the next time around.

As your credit recovers, you’re able to drive around in a car that’s safer, more comfortable, and performs how you need it to, as opposed to a vehicle that’s breaking down and inspiring frustration. BHPH financing comes with a host of benefits, especially if you feel trapped by your credit score; this will allow you to not only drive a better car but elevate your credit score and get you on your way to a better financial future.

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Buy Here Pay Here FAQs

BHPH financing isn’t familiar to everyone, so it’s to be expected that you may have some questions upon consideration of taking this route with your next purchase. There is a lot of information floating around, so let’s get to the bottom of some of the most frequently asked questions regarding the BHPH experience…

Q) Are There Any Limitations to BHPH Financing?

A) There are many reasons to choose BHPH financing; however, you’ll want to be familiar with some aspects of the process for the best results. First and foremost, your options may be limited when it comes to the car you’re able to afford. Remember, BHPH dealerships want to see you succeed, and the last thing they want to do is provide you with an assortment of cars that are too expensive for you. This will not only cause unwanted stress when you’re trying to make your payments, but you may have a difficult time improving your credit this way. It’s best to stick with vehicles that reside within your budget—and remember, as you’re working to improve your credit, you should be able to qualify for a much better selection the next time you buy a vehicle.

Q) Does BHPH Financing Come With Higher Interest Rates?

A) You can expect that BHPH financing will exhibit slightly higher interest rates than the financing offered to those with stellar credit. It’s important to note that this will depend on your unique financial situation; this is why it’s recommended to try and improve your finances as much as you can prior to shopping for a vehicle. From paying down debt to ensuring you’re not missing any payments on your bills, this will help you improve your credit score and qualify for a better rate.

Q) What Types of Cars Are Available With BHPH Financing?

A) You may be under the assumption that outdated vehicles with loads of miles on them are the only options you’ll have when you’re utilizing BHPH financing; however, this simply isn’t the case. Many reputable BHPH dealerships maintain lots stocked with quality used models to appeal to varying budgets. Remember, the amount you’re approved for—as well as the selection you get to choose from—is heavily dependent on your financial situation. This means trying to get to a better place before beginning the process is highly advised.

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The Buy Here Pay Here Experience

BHPH financing isn’t for everyone, but it can be an extremely beneficial tool for those struggling with their credit. You need to have someone willing to take a chance on you so that you can take the first steps in improving your credit. This is where BHPH dealerships can help, offering you safe vehicles for fair prices and helping you establish better credit and travel with confidence.

If you’re wondering how you’re ever going to afford a car with your current credit score, you may want to look into BHPH financing. Experience the impact it can have as much on your financial situation as on your daily drive.