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How do buy here pay here dealerships work?
I have poor credit and one of my friends recommended a buy here pay here dealership. How do they work? Is it a good idea for a car loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Buy here pay here
(BHPH) establishments are independent or small dealerships that offer in-house financing to customers. However, these types of lenders tend to charge higher interest rates because they often work exclusively with those who have poor credit, but this isn’t always the case.You should also know that your selection might be limited. BHPH dealerships also may expect you to make a large down payment, which helps them mitigate risk. Additionally, if you miss a payment, you may have less leeway with a BHPH establishment.
You’ll also need to budget for full coverage car insurance, which even BHPH dealers will require. If you want to save some cash on insurance, check out the
Jerry
app. Compare rates from up to 50 car insurance carriers so you can find the best rate. Once you make your choice, Jerry will take care of all of the rest. View full answer
- Gregory R.
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