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Buy Here Pay Here Financing

3 Need-to-Know Facts About Buy Here Pay Here Cars

Financial impotence is a term quite familiar to many American citizens. With so many citizens living paycheck-to-paycheck and suffering from poor credit scores, the idea of getting into a newer car may seem out of the question. Banks and dealerships will not often provide a loan for a person with a low FICO score. Fortunately, the solution to the problem rests with buy here pay here cars, or BHPH cars.

Forbes reports that an estimated 70% of Americans will have made a drastic mistake with their finances that will poorly impact their credit score before turning 30. In addition, 31% of individuals who defaulted on a loan or have an account with a collections agency report being rejected for an auto loan. Fortunately, buy here pay here dealerships are capable of providing you with financing for a vehicle even if you have deep subprime credit. Of course, there are a few things you need to know about these dealers, first.

Interest Rate is Only Slightly Higher

It is often widely misconceived that BHPH dealers are evil, money hungry devils looking to charge you excessively high interest rates. While there are companies that opt to charge the maximum interest rate allowable by their state, they are only the minority. The majority of dealers who offer buy here pay here cars charge roughly 20% in interest rates for their vehicles.

Although 20% is slightly higher compared to the interest rates you would find at traditional car dealerships and banks, keep in mind that a BHPH dealer is choosing to finance you with their own money despite your poor credit score. When you think about it that way, the interest rates do not really seem all that bad anymore.

In other words, if your credit is suffering from financial mistakes you made in your past, look to buy here pay here cars for a legitimate and affordable solution. The idea of driving a reliable, newer vehicle is not impossible thanks to these dealers. They work with people like you who have less than perfect credit or no credit at all to ensure that you get a fair deal on a vehicle that you want to drive at rates that are relatively decent, meaning they are not soul-sucking demons like you might have heard.

The best way to find out about interest rates is to contact a BHPH lender near you and discuss your options. In fact, picking up the phone and speaking with someone could have you behind the wheel of a newer vehicle before you know it. Many of the dealership professionals are friendly and willing to work within your budget to find you a vehicle that best suits your wants and needs.

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Insanely Fast Service and Results

When you try to go through traditional lending options, you often have to wait days or even weeks to find out if you have been approved for an auto loan. When you are in a position that you need a vehicle sooner rather than later, you may not have days or weeks to wait. Fortunately, buy here pay here cars are different. When you go to a BHPH lender, you receive fast service and an immediate answer on whether or not you are approved for a car.

Since a BHPH lender is offering you their own finances in order for you to obtain a vehicle, they do not have to wait to hear back from a traditional lending source. Keep in mind that you can speed up the process by bringing plenty of documentation with you. For instance, you will likely need to bring proof of employment, documentation showing how much money you make, a list of references, and proof that you are a legal driver.

The best way to determine what you need in order to enjoy fast, friendly service is to contact a buy here pay here dealership and ask them what form of documentation you need. Calling before you visit the lot is highly recommended since the required documents may vary based on the location of the business and the business itself.

Enjoy Customizable Loan Terms

With a traditional lender, such as a bank, you are often given a set term for your loan, which may consist of 24 or 36 months. Unfortunately, you budget may not allow for such terms. The good news is, many BHPH lender allow you to customize your loan terms, which allows you to negotiate the length of your loan. If you feel you need 5 years to pay off your loan term, the lender will likely be willing to accommodate you.

Since buy here pay here cars are financed by the company that offers the cars, they can offer you more flexibility on your loan terms. Whereas you may have heard that opting for a buy here pay here lender is a poor and expensive choice, many of those who have worked with BHPH dealerships have been happy about it.

Since your loan terms are often customizable, that means that you are likely able to speak with the dealer about switching up the terms of your loan should your financial issues change. For instance, if you happen to lose your job or your hours get cut at work, you can talk to the dealer about lowering your monthly payments by stretching out the length of your loan term.


Despite whatever scary stories you may have heard regarding BHPH auto dealers, it is highly likely that the majority of what you heard was based on a misconception. Speaking with a reputable BHPH dealer is the best way to determine if it is the right option for you. Contact a dealer near you to discuss details about a down payment, monthly payment options, and loan terms. In the end, you will be pleasantly surprised at what the dealer can offer you.

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“Seven in Ten Americans Mess Up Their Credit Before Turning 30,” Lauren Gensler, Forbes.


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