Blog / Buy Here Pay Here

What Is Buy Here Pay Here

Customer signing vehicle financing paperwork at a dealership desk

Please view Heritage Motors "What Is Buy Here Pay Here?"

Content Provided by AutoTrader.com

If you've found that every other credit avenue for financing a car is closed to you, a Buy Here Pay Here (BHPH) dealer may be your last, and best, resort.

Most of us simply can't afford to buy a car with cash. Typically, we borrow money for a car through third-party lenders, such as banks, credit unions and carmaker-associated lending companies.

For a variety of reasons, however (such as a spotty credit history, no credit or a very low credit score), traditional lenders may not work for you. If that's the case, there are always BHPH dealers.

What Is Buy Here Pay Here Financing?

BHPH financing means that you arrange the loan and make payments on it at the dealership where you purchased the car. In other words, it's a one-stop shopping process because the car dealer is also the finance company.

Because loan decisions are made by the BHPH dealer, who wants to sell you a car, approval is nearly always guaranteed. If you have an address and a steady income, your chances for approval are very good.

Granting you a loan, however, isn't out of the goodness of the dealer's heart; they will probably make as much, or more, profit on the financing as they do on the car itself. As a high-risk borrower, you can expect a double-digit interest rate.

It's helpful to find a dealer close to your home or work because, rather than mailing a monthly payment, the BHPH dealer might require you to make weekly or biweekly trips to the dealership to pay in person. Although some will accept payment online or by mail or phone, BHPH usually means physically bringing your payment to the dealership.

Differences Between BHPH Dealerships and Traditional Dealerships

Lately, the lines separating a more traditional dealership and one offering BHPH have become blurred. Some traditional new- and used-car dealerships now offer BHPH financing as an option. You might not see "Buy Here Pay Here" written across the windshields of the cars, but phrases such as "We Finance" are usually code for BHPH.

If you're having trouble getting traditional financing, start with the used-car lot at a franchised dealership, such as Chevrolet or Dodge, that advertises easy financing or rebuilding credit.

The bad news is that BHPH turns the car-shopping experience upside down. Rather than settling on a car and then talking financing, a BHPH dealer will first qualify the customer before determining how much they're willing to lend. Finally, the dealer will show the customer which cars are options to buy, and choices will probably be limited.

With BHPH, always ask about the late payment policy. Is there a grace period, and if so, how long is it? Make sure that the contract clearly spells out how long the period is between missing one of those weekly payments and repossession.

Who Should Go to a BHPH Dealership?

Your credit may well be better than you think. Always go to traditional lenders first: banks, credit unions and even finance companies. Only when every one of them has denied you should you revert to a BHPH dealer.

Benefits of BHPH

  • They put credit-challenged borrowers in a car when a traditional lender will not.
  • On-time payments can help repair your credit history (but be sure that the BHPH dealer reports payment histories to the credit bureau).
  • They buy older cars and will be more willing to take in an old beater toward the down payment of a new car.
  • What it means to you: When every traditional lender turns you down, Buy Here Pay Here dealers can help put you behind the wheel. If you think Buy Here, Pay Here is a good fit for you can your circumstance, check out our Buy Here, Pay Here page that list specific dealers and cars that are available with BHPH financing.

What it means to you: When every traditional lender turns you down, Buy Here Pay Here dealers can help put you behind the wheel. If you think Buy Here, Pay Here is a good fit for you can your circumstance, check out our Buy Here, Pay Here page that list specific dealers and cars that are available with BHPH financing.

Source: AutoTrader.com (September 2014)

For more information, please click the links below:

Posted in:

Recommended Posts

How Truck Bed Length Affects Daily Use

Truck Bed Length The right bed length depends on what you carry and how you use your truck every day. When shopping for a truck, many buyers focus on towing capacity, engine options, or trim levels. One feature that deserves just as much attention is bed length. It affects everything from parking and maneuverability to cargo space and everyday convenience. Choosing the right bed size is less about getting the biggest truck and more about finding the best fit for your lifestyle. Short Beds Are Easier Around Town Trucks with shorter beds are often easier to park, fit more comfortably in garages, and are generally more maneuverable in busy parking lots. If your truck will spend most of its time commuting or running errands, a shorter bed may be all you need. Long Beds Offer More Cargo Flexibility A longer bed provides additional room for lumber, landscaping supplies, outdoor equipment, and other oversized items. It can reduce the need to leave the tailgate down when carrying longer loads. For drivers who regularly haul materials, the extra space can be a valuable advantage. Think About Everyday Tasks It is helpful to consider how you will actually use the truck. Will it carry tools for work, bicycles on weekends, or camping gear a few times each year? Your most common activities should guide your decision. Buying more truck than you need is not always the most practical solution. Cab Size and Bed Length Work Together Truck configurations often require balancing passenger space with cargo space. A larger cab may reduce the available bed length, while a smaller cab can allow for a longer bed. Comparing different configurations side by side helps you understand which combination best supports your daily routine. Compare Before You Decide Seeing different truck configurations in person can make the decision much easier. Walking around the vehicle, measuring cargo space, and sitting in the cab often reveal differences that are difficult to appreciate online. You can compare a variety of models by browsing available inventory before scheduling a visit. Choose the Truck That Fits Your Life The best truck is the one that handles your everyday needs comfortably. A bed that is too short may limit what you can carry, while one that is longer than necessary may make daily driving less convenient. If you are comparing truck configurations or have questions about which setup may work best, you can always reach out for assistance. Taking a few extra minutes to think about how you will use your truck today and in the future can help you make a choice you will be happy with for years to come.

How Dealers Match Buyers With Lenders

Working with multiple lending sources can help simplify the financing process. Many buyers assume that vehicle financing comes from a single lender. In reality, dealerships often work with a network of lending institutions. This gives buyers access to multiple financing options without having to contact each lender individually. Understanding how this process works can help remove some of the uncertainty from financing. Every Lender Has Different Guidelines No two lenders evaluate applications in exactly the same way. Each one has its own programs, requirements, and approval guidelines. Having access to several lenders allows financing options to be reviewed based on your individual situation. One Application Can Save Time Instead of completing separate applications with multiple financial institutions, buyers can often complete a single application that is reviewed with participating lenders. This helps make the process more convenient and keeps everything organized. Comparing Available Options Once lender responses are received, financing options can be reviewed together. Factors such as loan length, payment structure, and available programs can all be discussed so you have a clear understanding of your choices. The goal is to help you make an informed decision that fits your needs. Preparation Helps the Process Having basic information ready before applying allows lenders to review your application more efficiently. If you would like to begin before visiting, you can complete the online credit application at your convenience. How a Trade In May Help If you have a vehicle to trade in, its value may become part of the overall financing structure. Bringing title or payoff information helps ensure accurate figures during the review process. You can learn more about this by visiting the trade-in page. Moving Forward With Confidence Financing should feel straightforward, not overwhelming. Understanding how dealerships work with lenders can help you feel more comfortable before your visit. If you have questions about the financing process or what information to bring, you can always reach out for guidance. A little preparation can make the entire experience much smoother.

Why Tire Condition Matters at Trade In

Appraisers Notice Tires When Evaluating a Vehicle. When preparing for a trade in, many drivers focus on mileage, age, and appearance. While those factors matter, tire condition can also play an important role during the evaluation process. Tires are highly visible and provide clues about how a vehicle has been maintained over time. Tread Depth Is Easy to Spot One of the quickest things an appraiser can assess is tire tread. Tires with healthy tread depth generally indicate that the vehicle is ready for continued use. Worn tires may suggest that replacement costs will need to be considered in the overall evaluation. Even Wear Patterns Matter Tires that wear evenly often indicate proper maintenance. Uneven wear can sometimes point to alignment issues, suspension concerns, or inconsistent tire care. These patterns help provide a broader picture of the vehicle's condition. Matching Tires Create Confidence A matching set of tires can help demonstrate consistency in maintenance. While not every vehicle will have identical tires, a well maintained set often creates a stronger impression. This is another factor that contributes to the overall evaluation. Tire Care Reflects Ownership Habits Appraisers look at more than just the tires themselves. Tire condition can help indicate how the vehicle was cared for overall. Regular rotations, proper inflation, and timely replacement all support a positive ownership story. Preparing Before an Appraisal Check tire pressure before your visit Inspect tread depth and wear patterns Clean the tires and wheels Gather maintenance records if available These simple steps can help present your vehicle clearly during the evaluation process. Understanding the Bigger Picture Tires are just one part of a trade in appraisal. Mileage, condition, history, and market demand are also considered. If you would like to learn more about how evaluations work, reviewing the trade-in process can provide additional insight. Planning Your Next Vehicle Maintaining your tires helps support both daily driving and future value. Small maintenance habits often contribute to a stronger overall evaluation. When you are ready to explore replacement options, browsing available inventory can help you compare vehicles and plan your next step. If you have questions about preparing your vehicle for trade, you can always reach out for assistance.