In the Buy Here Pay Here Car Dealership


Many folks are unfamiliar with Buy Here Pay Here Car Dealerships until they will have a dependence on them. The point of this article would be to shed some light on the way that the BHPH car lot and auto dealer operates and how they change from the typical automobile dealer. I will offer you a look in the BHPH business model and how they sell, finance, acquire and secure automobiles.

To provide you with some background the primary focus of the Buy-Here Pay-Here car dealer would be to sell and finance vehicles for folks which have bad credit and so are unable to buy and finance automobiles through traditional dealers and lenders. They do this by selling used vehicles and financing them in-house or through the selling dealer. They don’t really use banks, boat loan companies or third party lenders. Their customers choose the car and make the weekly payments at exactly the same place, hence Buy Here Pay Here.

Setting-Up the Buy Here Pay Here Car Dealership

Some BHPH car dealerships are small corner lots that create business in and old gas station or an auto repair facility given that they have an office, a number of bays where they can work on or prepare cars on the market on the lot and an area where they can display their vehicles which are for sale. On the other end of the spectrum you will find that some new car dealers set-up a Buy Here Pay Here division as well as their regular car sales business to support customers that won’t qualify for an auto loan through their normal lenders. So that you can see that BHPH car dealers will come in all sizes and shapes.

Inventory for the BHPH Car Dealership

The tiny to mid-size BHPH car dealer is always on the lookout for vehicles to sell on their lot. Each goes to auctions to buy cars, buy cars from private party sellers plus they also buy cars from new car dealers which were trade-ins. They’re very particular concerning the cars they buy because they have to pay cash plus they need a large number of cars to stock their lot and attract customers with a good selection.

The brand new car dealers which have a Buy Here Pay Here Department usually sell their quality trade-ins in their BHPH Division. It makes good sense to market their trades with in-house financing since they have a steady way to obtain used vehicles at their disposal and they can avoid buying cars from the auction which is a very time intensive activity to get quality cars.

Irrespective of where they obtain vehicles they are very careful to make certain they only offer sound and dependable automobiles since they will undoubtedly be financing their customer’s purchases. If they were to sell junkers and beaters to their customer they stand a chance of the buyers not making their payments. Then if the customers don’t pay they have to repossess the cars and they are stuck with vehicles which are unsellable because they’re junk. To help you see why they are very particular about the cars they sell and finance at their Buy-Here Pay-Here car dealership.

THE PROCEDURE at the Buy Here Pay Here Car Dealer

The first step of the automobile buying process at the buy here pay here auto dealer is to see if the customer can qualify for internal financing. Some dealers pull the consumers credit file and some don’t, one of many concerns is the income and the stability of that income of the customer along with where they live. car dealership near me The BHPH car lot owner is looking for a person that comes with an income that can service the car finance weekly or biweekly and how long they have been on their job. These aspects are often more important than prior repossessions or bankruptcies.

Once they be eligible for internal financing they discuss terms of the car finance including the deposit, amount of payments, the interest and when and where in fact the car payments should be made combined with the form of payment which could be cash or checking account debit. The price is important, but the customer is normally more worried about the payment.

Vehicle Selection at Buy Here Pay Here Lots

Then it is time for the client to select a vehicle from the dealer’s lot. They’re given a listing of the vehicles they are qualified to get and finance and they choose their vehicle of choice. Yes, that is not the same as your traditional car dealer, but things are done differently at the buy here pay here auto dealer. Some individuals say that the car is overpriced, but you need to understand that the BHPH dealer is approximately to finance a person with very bad credit and a little down payment.

The Buy Here Pay Here dealer is playing the odds and hoping the buyer will make the payments as agreed, but a certain percent of all sales should be repossessed following the buyer has run the automobile into the ground. The car buyer with bad credit knows that they can be paying a higher price for the automobile and an interest rate that is high to compensate the dealer for the risky and the expenses they will have to absorb if they repossess vehicles.

Buy Here Pay Here Car Dealer Paperwork and Conditions

Preparing and signing the paperwork is performed in the dealer’s office which is a contract between the buyer and the dealer. The documents are legal and conform to regulations which are set by the state when the car is being purchased and financed. The terms and conditions are set by the dealer and the buyer must conform to all those conditions or they are violating a legal agreement. The final thing you want to do is be late together with your payment as the car could be repossessed the following day. Grace periods for late payments are rare and the BHPH car dealer is within their rights to seize the vehicle one day following the payment is late. You might say you will find a zero tolerance policy when it comes to enforcing the terms and conditions of the contract between dealer and buyer.

BHPH Auto Dealer Bad Deals, Repos and Mistakes

Even the very best run dealers are certain to make bad deals, mistakes and also have to repossess vehicles. They are careful to accomplish everything they can to avoid problems, but it still happens. Should they have to repossess an automobile they have to hire a recovery firm that may cost several hundred dollars and then they need to do something with the car. Very often the car has been in an accident or been run hard and set aside wet which makes the car worthless and ready for the scrap yard. It is extremely rare that a repossessed car comes back who is fit. The Buy Here Pay Here Car Dealers takes it on the chin and loses money, but hopefully learns a lesson with regards to qualifying buyers.

Buying a car from a BHPH car dealerships is different than employing the traditional dealer in several ways, but it is really a second chance or maybe the last opportunity for the automobile buyer with bad credit. Some of the policies and terms might seem unfair, but even the small dealer can have thousands of dollars tied up in inventory and finance agreements. They are putting themselves on the line to help the automobile buyer that needs an automobile, but has a history of spotty credit. It’s just business.

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