Buy Here Pay Here auto financing (BHPH) is a fairly new concept, but one that is really helping more people get into their own car. It’s a system that cuts out a lot of red tape and middle management, instead putting the power into the hands of the car dealership and the car owner. For many people, it’s the easier and often only way to get their own financing taken care of. But what, exactly, is it?
Buy Here Pay Here auto financing is a system that has dealers providing the loans for cars rather than banks. This serves a number of important purposes, not the least being that it makes it easier for dealerships to provide loans to people whose credit may not be in the best shape. It also allows them to make fairly instant determinations on whether or not to grant a loan, so neither they nor you waste time on an effort that simply won’t be possible. Basically, it puts the control much closer to you, and makes it easier for you to explain things or answer important questions that might change the outcome for you.
Often what happens with BHPH is that, as the name implies, you purchase the car at the dealership, then instead of making payment to a bank, you make them at the dealership that you got the car from. While there are some dealers who have systems in place to pay online or by phone, most still require that you physically come in and pay by check or cash, however that is slowly changing. Either way, make sure that you know how payments are made if you enter into one of these deals. Also make sure that you know what the late payment penalties are, just in case.
Another thing to keep in mind is that Buy Here Pay Here auto financing usually reverses the way that you would normally be accustomed to handling a car sale. Generally if you’re looking for used cars Charlotte NC, for example, you start by going to the dealership, they show you a number of cars, and you pick one you like. After that, they check your credit and quote you a price. With the BHPH model, usually the dealership will start by asking you about your credit history and income, then they will run a credit check and show you the cars that they feel you can afford based on your answers.
Not everybody can afford a car, but more people can than we once thought. In fact, all it took was cutting the banks out of the process and focusing on the sales that can be made. That’s the real genius of Buy Here Pay Here auto financing.