Purchasing your dream vehicle is easy with the help of proper planning and financial management. However, it can soon become overwhelming and complex if you have a history of poor credit or no credit history. Traditional car dealerships offer financing through third-party lenders or banks is not convenient and straightforward for all.
Thanks to the innovation solutions, you can now get the benefits of direct financing to customers from Buy Here and Pay Here (BHPH) dealerships. The process of purchasing your vehicle and making payments directly to the dealership is easy with professional BHPH dealerships.
Read on to learn more about how these dealerships work, the top reasons to consider these dealerships and some of the practical tips for partnering with them.
Working of Buy Here Pay Here Dealership
Before partnering with the BHPH dealerships, you must understand their mode of operation. These dealerships are different from the working of traditional financial methods as they adopt a step-by-step approach:
- Step 1: Selecting the vehicle from inventory
- Step 2: Check your credit for a better understanding of the borrower.
- Step 3: Evaluating financing solutions based on your conditions
- Step 4: Checking payment time- weekly or bi-weekly
- Step 5: Transferring the ownership after the completion of payments
Buy Here Pay Here Dealership- When to Consider?
With several finance options available in the market, you can consider going with the expert BHPH dealerships in the following cases:
- Limited financing
If you’ve limited access to financial options and traditional financing, the BHPH dealership is the only available solution. Hence, it gives the solution to buy your favorite vehicle when traditional lenders see you as risky due to ongoing financial struggles, recent job loss, or bankruptcy.
- Looking to build or rebuild credit
If you’re interested to build or rebuild credit, you can go for the BHPH dealerships. You can improve your credit score by making timely payments to these dealerships over time. Hence, you can open doors for other financing options in the future by building or rebuilding credit using BHPH.
- Quick car delivery
Individuals when looking for fast car deliveries, it is easy to seek the help of BHPH dealerships. This is because the approval process of these dealerships is quicker than that of traditional car dealerships allowing you to take the same-day delivery. So, you get immediate access to the vehicle in case of emergencies.
- Flexibility in payments
Your instability in income or inability to pay traditional installments is best solved by the BHPH dealerships. These allow weekly or biweekly payments to align easily with your payday schedules. Hence, the chances of missing a payment date are reduced to associated circumstances are averted.
- Poor credit history
Individuals with a history of defaulted loans, bankruptcies, or late payments may fail to get an attractive vehicle loan at a traditional dealership. While the banks and third-party lenders decline finance to your vehicle, BHPH dealerships work with interested buyers having bad credit scores. It focuses on the ability of individuals to pay today rather than their credit history.
- No credit history
Having no credit history makes it difficult for you to get your vehicle loan approved as you’re often considered a risk rather than a reliable borrower. BHPH dealerships do not rely on traditional credit scores and look at factors like the ability to make regular payments, income, and employment status.
Quick Tips Before Selecting The Buy Here Pay Here Dealership
Some practical but effective tips before selecting the BHPH dealership for purchasing your dream vehicle are:
- Check the overall interest rates of the BHPH dealerships and compare them with the traditional financing options.
- Confirm if your dream vehicle is offered by the dealership as these offer new and old vehicles both.
- Focus on ensuring payments on time as missing a payment can lead to repossession of your vehicle.
- Read the terms and conditions properly to prevent additional fees or hidden charges.
Ending Note
Buy Here Pay Here dealerships are helping several individuals own their dream vehicles. These have different working from the traditional vehicle dealerships and help people with limited financing, help build or rebuild credit, quick car delivery, flexibility in payments, poor credit, or no credit.
It is easy to get connected with professional buy here pay here dealers with a quick understanding of interest rates, available vehicles, payment times, and other terms and conditions.
