Is Buy Here, Pay Here – Right For You?

September 25th, 2015 by

Bad Credit SignIn the event that traditional loans haven’t worked for you, it might be a good idea to consider pursuing what is known as a buy here, pay here auto loan. The good news is there are plenty of buy here pay here car lots in Cincinnati, Ohio.

Read on and if you think that this is the route you need to take in order to get behind the wheel of a reliable car, we will take you through the necessary steps to find the right BHPH loan for you.

Understanding the Buy Here, Pay Here Loan Offer

After you decide to stop by one of your local buy here pay here car lots in Cincinnati, Ohio, you’ll be surprised by how easy it is to establish BHPH loan terms that are right for you.

The beauty of a BHPH loan is that you will make all of your payments at the BHPH car lot, rather than mail a check or pay online. Granted, you’ll make them more often than the traditional monthly expectation, but finding a conveniently located BHPH dealer makes dropping off payments quick and easy.

Many consumers feel considerable angst when it comes to applying for a loan and waiting for the approval. With most automotive loans, you apply for the loan through the lender, which could be a bank or credit union, and wait to see whether they will finance your purchase. At BHPH car lots, the dealer is the one financing the car for you, and so you’re basically guaranteed to be approved for whatever loan you need to make the purchase.

So, what does it take to be approved for a BHPH loan?

This is a question many people ask, particularly those with less than impressive, or subprime credit scores. Fortunately, your credit rating has little to do with getting approval for a BHPH loan. What you need in order to be considered, and likely approved, is proof of both your residence and a consistent, reliable source of income.

Having read this far, you might find yourself wondering, “what’s the catch?”

And you’re right to do so. As easy as this process seems, and actually is, there is a cost involved. Isn’t there always?

Bad CreditThis is the only time that your credit history comes into play. Not that you’ll be denied a loan, but that the interest rate you can expect to have will be significantly higher than most traditional loans.

With a traditional loan, for those applicants with good credit, the interest rate generally ranges between three to four percent. Applicants with average credit can anticipate interest rates around five to six percent, while those with lousy or subprime credit will pay interest rates anywhere from seven to thirteen percent, and sometimes even higher.

For those who need to pursue a BHPH auto loan, prepare to be presented with double-digit interest rates.

The interest rates are where the BHPH car lots profit. With significantly higher interest rates, the BHPH dealer makes as much off the actual loan itself as the sale of the car.

While this might not be ideal, sometimes circumstances dictate that this is what must happen, at least for the time being, especially if you need to get a car in order to work and satisfy professional commitments in defense of a paycheck.

A few helpful hints to keep in mind

Location, Location, Location

Bad CreditAh, the battle cry of realtors!

In this case, location, location, location, is just as important for you when looking for a buy here, pay here car lot.


Remember, you’ll be expected to make your payments directly at the BHPH dealer, so you’ll want to ensure that it is located in close proximity to your home or place of business.

Rather than make monthly payments, the BHPH dealer will expect you to submit payments every week, or biweekly.

In some cases, you might find yourself dealing with a BHPH lot that is willing to take payments online or over the phone; however, the traditional expectation involves physically showing up with the necessary check or cash.

Reading this you might be wondering where your nearest buy here pay here car lots in Cincinnati, Ohio are located. This link is a handy tool to help you find BHPH dealers in your area.

However, you should be aware that the terminology, “buy here, pay here,” is a bit dated. These are not necessarily stand alone operations, separate from a traditional dealership.

Actually, most car dealerships will offer BHPH loans. But, you likely won’t see it advertised that way. Instead, ask about options commonly listed by the dealer as financing or “We Finance.”

If you want to find a reputable BHPH dealership, look no further than your local franchised dealerships that represent top automakers, like Chevrolet.

See if they advertise key terms like financing, or credit help. If so, then you’re likely in the realm of a BHPH dealership.

Traditional Car Shopping Takes a Back Seat

Bad CreditWhat exactly does this mean?

Well, usually when you go car shopping, you choose what you want with respect to trim level, packages, and options, based off your credit standing and what the lender is willing to extend for your purchase. Basically, you shop and then explore your financing options.

But, with a BHPH loan the dealer determines what you qualify for, and so the dealer will then decide how much he or she will lend, based on his or her assessment of you, the consumer, as a risk.

Every now and then, a BHPH dealer will consider purchasing your old car, even if it is an older model. In fact, BHPH dealers more often than not prefer to buy older cars from loan applicants.

If you have an older car to sell, the BHPH dealer might put the value of that car as a down payment towards the purchase of a new one.

In that case, the dealer will figure how much car you can purchase, based on your agreed-upon loan terms.

Variety will likely not factor into your options. Don’t expect bells and whistles, but a bare bones, gets you from point A to point B, kind of car.

A lot of people in need of a buy here, pay here car loan are trying to conquer a history of bad credit or financial instability. If you are one of them, take the time to ensure that you fully understand the BHPH dealer’s late payment policy.

Ask about grace periods and whether or not you have one. If so, how long is it for, should you need it?

This is important information because you don’t want to find yourself in a situation when a missed payment translates into vehicle repossession, particularly if your goal is to rebuild your credit.

Partnering with a BHPH dealership is a smart move to if you want to repair your credit. Just check that the BHPH dealer you work with does, in fact, report your payments to the major credit agencies. After all, if you’re making the right moves, you want to get credit for them. Pun intended.

Be aware of your credit history and know your score before you pursue an automotive loan of any kind. If your score leaves something to be desired, or isn’t as high as those required by traditional lenders, then get yourself to any of your nearest buy here pay here car lots in Cincinnati, Ohio.

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