You may sometimes wonder, what does the term buy here pay here dealerships. or BHPH, mean? Understanding what buy here pay here car lots offer is crucial to your financial well-being and the chances of buying a car. Though buy here pay here might sound great, we at Car Loans of America provide just the best kind of services, auto loans, and financing you require at an affordable rate. We work with bad credit and you’re able to finance the car you want through us at a much lower rate than buy here pay here dealers.
What Is Buy Here Pay Here? How Does Buy Here Pay Here Work?
Simply put, buy here pay here dealerships, also called BHPH or pay here buy here, are those dealers who do not usually sell cars, but they act as banks. They act as banks because they provide a helping hand for buyers who have bad credit to enjoy in-house financing. Bad credit is a term given by agencies such as the Consumer Federation of America and the National Credit Reporting Association.
A customer is said to have bad credit if it is seen that he has a FICO score of about 600 or below 600. For prime loans, the Confessional Budget Office considers bad debt to be a FICO score of 620 as the cutoff.
Car Loans America is very friendly for you to use as a customer because it doesn’t strictly consider the FICO scores as the basis for lending. Our services are far superior to a traditional buy here pay here dealership and customers who want to calculate monthly payments can make a payment directly to a third party. We do not ask for financing from prospective lenders.
Pros and Cons of Buy Here Pay Here Dealerships
Buy here pay here dealers can truly come off as enticing, especially when you’ve exhausted every alternative financial avenue. BHPH allows for easier financing and approval, however, there are several things to consider before you commit, visit, and sign the paperwork at buy here pay here dealerships. What is the buy here pay here pros and cons? This guide is designed to provide you just enough information that you require.
Buy Here Pay Here Dealerships Pros
Allows For Bad Credit – Many dealers who use the buy here pay here (BHPH) service usually grant vehicles to customers who even have either bad credit histories or no credit histories. You often see such dealers like the Car Loans of America advertising “ no credit, no problem.” We also offer a no credit check before you receive our bad credit car loans.
Buy Here Pay Here Dealers Are Easier to Use
With Car loans in America, you have the opportunity to buy a car and also receive financing all at the same time. Buy here pay here dealers also make it easy for people to make payments after the purchase of their auto vehicles and it is indeed very straightforward to use.
Those with a history of bankruptcy or vehicle repossession face different obstacles when trying to finance a vehicle. Since both have bigger impacts no credit scores, you’re less likely to qualify for financing from a traditional dealership. This means you have fewer options, and that’s where buy here pay here car lots are there to help.
Buy Here Pay Here Dealerships Beneficial even if you are unable to make a down payment
Car Loans of America is always ready to offer you the opportunity to buy a car without you even requiring to pay some amount in down-payment. Sometimes buy here pay here car lots and services may only require that you pay only as low as $500 or even less. Buy here pay here car lots cater mainly towards the funding of used cars.
Buy Here Pay Here Car Dealership Cons
It requires or gives a higher Interest rate
For auto dealers who offer in-house financing, interest rates from the loans granted are usually much higher than those from banks, credit unions, and other small lenders. Many government agencies that advise customers on the best kind of loan that they require usually do not fail to mention the exorbitant interest rates from this type of dealership.
You could face the problem of borrowing much more than your vehicle is worth
Many auto lenders clearly state the limit to which they are willing to lend for vehicle purchase which is usually based on the true value of the vehicle. The buy here pay here dealers who usually grant credit for a customer does not do that. As a result of this, the customer may need to pay much more than the value of the vehicle as such customers need to take the necessary caution when they plan on using this type of buy here pay here dealership.
Loans may affect badly your credit score
Paying off your auto loans is of immense benefit to you. If you do well to pay them off on time, you may notice that your credit score will improve. The problem with buy here pay here dealerships is that in some cases they may fail to report your payments to your credit bureau. It’s also true if you fail to do so abruptly one time. You may endeavor to maintain good payment at all times but more times than not you will not see the benefits of your payments.
Tracking devices may have to be installed in your vehicle at a (BHPH) buy here pay here car lots
Due to bad experiences from lending to people who have bad credit, many buy here pay here car lots take the necessary precaution. How? It’s done by installing a tracking device in their car. Now if an individual with a poor credit fails to pay or simply misses a payment, the device could stop the car from starting. This would, in turn, enable them to easily repossess their vehicle.
So after considering these pros and cons of the buy here pay here dealership, you may start to wonder: Where can I go if I want to buy a car with bad credit? Well, the truth is that there is hope. There are lenders out there who are willing to offer you just the finance you need to purchase your vehicle. Buy here pay here dealers or BHPH dealers don’t tread lightly on these types of issues.
Car Loans of America is currently a leading auto lender service based in the US. Car loans in America provide services to customers who have bad or no credit. We also provide loans to people who face bankruptcy as well.
You have an opportunity to apply for bad credit auto loans from your work, your home, or your mobile device! From Car Loans of America, you can get loans in a few minutes. You can always receive loans that are channeled to meet your needs. When you receive a pre-approval from Car Loans of America, you have an opportunity to as a cash buyer. You’ll also have the strength to shop with enough confidence.
Having the opportunity to know beforehand how much you would spend is an advantage. Your interest rate is also provided along with the duration of your loans. We do so that you can negotiate a great deal which would suit you!
Car buying is easier with Car Loans of America
If you want to purchase a nice car with Car Loans of America, we have made this process simple for you to perform. Sometimes we provide just the right kind of service which could afford you the opportunity to even drive away with your new vehicle on the same day your financing comes. All you need to do is to download a loan packet. Then, select your preferred dealer who you take the loan packet to. Whether you’re trying to understand how rent to own works or how to get an auto loan with bad credit. We’re here to help!
Our network of dealerships. It helps you see the required models which meet our standards. With this service, we assure you of the best kind of vehicles with a clear title. We also provide other means you can use to search for other dealers like the dealer locator.
After the purchase of your vehicle, you have a lot of options for payment. You can decide to pay off the credit of the car early if you so desire.
From this guide, it’s no doubt that it’s an easy process to purchase a car with us. Our customers trust our process. They are certain that they can count on us with any kind of credit they may have. You should have come to realize the power of understanding buys here pay here dealerships.
Buying a car and receiving auto financing from us is smooth! And, it’s a seamless process that is trusted by customers of all credit types. If you’re looking for BHPH or buy here pay here dealerships, consider working with a leading lender, like us, and explore all of your auto finance options.
So, what are you waiting for? Contact Car Loans of America today! Enjoy all the benefits you so require before you end up at buy here pay here car lots!