What is a Buy Here Pay Here Dealership?

May 21st, 2014 by

Like a lot of people, you may have paid a few bills late here and there. You may have even let an account to go into collection. Like a lot of people, you may have also run up a lot of credit card charges, creating a high debt-to-income ratio. The economy is still limping along, and you may have had to use your credit cards just to get by some months.

Whatever the reason, if you have bad credit or poor credit, you may have a hard time getting approved for financing to buy a car, which can significantly impair your quality of life. How will you get to work or take care of your family if you don’t have a car? That’s where a buy here pay here dealership can help.

If you’ve never heard of this kind of dealership, you may be thinking, “What is buy here pay here?” It’s exactly what it sounds like: You can get financing from the same dealership where you buy the car.

Buy Here Pay Here Financing


A buy here pay here dealership, sometimes referred to as a BHPH dealership, provides its own financing, so you pay the dealership directly each month for the car. There are no middlemen between you and the dealership, so you are more likely to be approved, even if you have a poor credit history. Not only will you get the financing you need, but you’ll also feel more confident dealing with the same person for the sale and financing of your car.

Buy here pay here financing typically carries a higher interest rate than traditional car loans. However, paying a slightly higher interest rate is better than getting no loan at all. In addition to providing you the car you need, the loan also allows you to start rebuilding your credit if you make timely monthly payments. You may even be able to refinance the loan in a couple of years if you so choose.

Finding a buy here pay here dealership that you can trust is crucial to having a good experience with this type of lending. There are many unscrupulous dealers out there who prey on desperate borrowers with usurious interest charges. Do your research and find a dealership that has a reputation for good customer service. You’ll get the car of your dreams while also getting your finances back on track.