Buy Here Pay Here (BHPH)

Since most of us cannot afford to buy a car with cash, we seek out to borrow money for a car through traditional finance lenders.

But some of us do not qualify because we have been told our credit scores are too low.

“Buy Here Pay Here” are used car lots that sell to buyers with poor credit.

Buy Here Pay Here facilities provide us the car and handle the payments, too.

As long as we can prove a valid home address and steady income, approval is usually guaranteed. A large down payment is required. And a weekly (or bi-weekly) payment is needed.

As a high-risk borrower, we can expect a double-digit interest rate.

The bad news is if we miss a few payments in a row, we lose our down payment and our car gets repossessed.

It’s helpful to find a dealer close to our home or work. Because, rather than mailing a monthly payment, the BHPH dealer might need us to make a weekly trip to the dealership to pay in person.

Buy Here Pay Here is a different shopping experience. Rather than settling on a car and then talking financing, a BHPH dealer will first qualify us before determining how much they’re willing to lend. Finally, the dealer shows which cars are available (and the choices are usually limited to what is on their lot).

The car industry likes to scare us about our credit. Our credit may well be better than we imagine. In fact, I help my clients get into a new, leased car with a FICO score as little as 620.