Advantages of Buy Here Pay Here Dealerships

Buy here pay here dealers in Ohio and other areas have advertisements scattered here and there, and to you they may just be another dealership out trying to make a quick buck off people with bad credit. But, what you are missing is the advantages BHPH dealerships offer when looking for financing. Chances are, you don’t have many options when it comes to finding a car with bad credit. The banks are tough to get loans from, and various other dealerships may refuse to give you financing. There are individual subprime lenders online you could go through, but why add that extra step? A buy here pay here dealership will do it all for you, and get you on the road much quicker than other car financing options.


What is a Buy Here Pay Here Dealership?

Red stamp that says "APPROVED" on a white background

A good buy here pay here dealership is a dealership that makes financing simple, effortless, and quick for the consumer. Typically, there are multiple steps involved when financing a new car, especially if you have bad credit. First, you need to find out your credit score and see where you rank. Second, you need to find a subprime lender that will approve you for a loan. This can be a long and arduous process, and the preparation time can sometimes take months. With a BHPH dealership, they do all that for you the day you walk onto the lot.

If your credit is bad, most BHPH dealerships have a “no credit, no problem!” mentality. They are looking to get you back on the road as quickly as possible, so you can get back on track. No need to worry about finding a lender, the BHPH dealership will do that for you. You will end up taking a loan directly from them, and end up paying them back directly. In turn, this creates a mutually stress-free relationship: you know that your money is getting to them on time because you are physically handing it to them, and they trust you more each time you walk in the door. After all, the dealership is taking a big risk loaning cars out to bad credit customers. Even though they can repo it at the drop of a dime, it still costs them time and money. Something they would prefer to avoid.


De-bunking the Stigma

Unfortunately, buy here pay here dealerships have developed a bit of a stigma. They are seen as places where bad credit customers get swindled for thousands of dollars, only to find out months later they were sold a junk car. Not all buy here pay here dealerships are like this, just like not all mainstream dealerships are goody two-shoes. Most of the bad instances with any dealership revolve around the customer not understanding the financing terms fully. This can lead to many financial issues down the road, for the customer and the dealership. Im not saying all buy here pay here dealerships are angels, you still need to be wary when finding a buy here pay here dealership. But not all of them are bad, and they don’t deserve the stigma that’s been branded on them.


Advantages of a BHPH Dealership

There are actually multiple advantages to a buy here pay here dealerships that most other lenders aren’t able to offer, the first one being time and hassle. It was mentioned briefly about how the BHPH dealership will take care of everything for you, but the gravity of that doesn’t sink in until you actually contemplate it. Trying to find a car with bad credit is stressful enough, and that’s what a good buy here pay here dealership will attempt to eliminate. They’re there to help you, and make this process as simple and painless as they can.


Provides Necessary Transportation

Hand out flat with a car key sitting on it

We are living in a time where a reliable vehicle is a necessity, and if you have bad credit, you are going to have trouble finding one. When you think there aren’t any options left, there is a buy here pay here dealership. 9 times out of 10, they will get you on the road in a car that you desperately need, even when everywhere else has rejected you because of your credit.


An Opportunity to Rebuild Credit

If you opt for financing from a BHPH dealership, they will end up providing you a loan. Even a bad credit car loan is still an opportunity to rebuild your credit. As long as you are making your payments on time and showing responsible financial habits, the dealership will report that to the credit bureau. Keep up those payments, and you will end up rebuilding your credit quicker than you may think. Once your credit get’s better, you will qualify for a bigger loan to take out a better vehicle. Since you already have an excellent financial reputation with the BHPH dealership, the dealership will be more than happy to provide you financing for a better car. Making your life even easier when the time comes for that next step.


Reliable Used Transportation

You’ve fallen on hard times; you have about $500-$1,000 dollars you can spend on a down payment, and no one is taking you because of your bad credit. You waltz into a BHPH dealership and they approve you and get you on the road, everything is good. But, here’s an alternate scenario: BHPH dealerships never existed, and your credit is so bad that no one will finance you. Where does that leave you with your $500-$1,000? Buying a used car off the side of the road. Plus, there are more options at a BHPH dealership.

The vehicles at a BHPH dealership are certainly more reliable than paying full price for some worn-out junker you’ve found on the side of the road in your neighborhood. Instead of paying full price for a junker, why not turn that $500-$1,000 into a more reliable investment that will not only provide you with more peace of mind; but also become a stepping stone for rebuilding your credit.


Final Words: Ignore the Stigma

While I’m telling you to ignore the stigma BHPH dealerships have developed, that doesn’t mean I’m saying trust every single one you find. But, finding a good BHPH dealership might be easier than you initially thought. These dealerships offer many advantages that other lenders can’t, and they will most certainly get you back on track quicker than your other financing options.