Who Would Benefit From Shopping at a BHPH Dealership?

Black and red vehicles parked in a dealership showroom with a pole of white and red balloons in the middle


Buy Here-Pay Here dealerships get a bad rap, whether justified or not. Still, this car-buying strategy can be beneficial to certain types of car buyers, specifically those with poor (or non-existent) credit scores.

Regardless of the circumstances surrounding your credit, these businesses are still willing to sell you (and even finance) a used car. These opportunities aren’t available elsewhere, thus securing the BHPH dealerships’ place in the industry.

Curious whether these businesses would appeal to you? Continue reading to see the groups of people who would benefit most from a BHPH dealership. When you’re finished reading, perhaps you’ll recognize that you should be visiting a Buy Here-Pay Here dealer in Cincinnati


Those With Poor Credit


Hand holding up a blue credit card against a white background


Buy Here-Pay Here dealerships are specifically pursuing those with struggling credit scores. These potential car buyers don’t have the money to just buy a used car outright, so they have to rely on some form of a loan. Unfortunately, due to their credit, they’re unable to secure that necessary line of money. This puts these customers in a jam; they need their vehicle to get to work, where they can make money to pay for that vehicle or loan. Without the vehicle, they can’t make money.

Luckily, there’s one way out of this predicament. BHPH dealerships take financing into their own hands, providing potential buyers with an opportunity that isn’t offered elsewhere. Since the business is financing their own vehicle, buyers can secure that much-needed car. In fact, your credit may not be of particular interest to these dealerships, as many BHPH businesses won’t even run a credit check.

Of course, since the dealership is lending that necessary money to the customer, there are some serious repercussions for not making the established monthly payments, and customers will also have to expect significantly higher interest rates or down payments (you may even see a spike in the value of a specific vehicle or a longer loan term).

These consistent payments are beneficial because you’ve finally secured a car, of course, but they can also help improve your credit score. As long as you get your payments in on time, you should see subtle upticks in your report. Plus, since the dealership is financing the vehicle themselves, you’re not held back by strict monthly payments. Negotiate with the seller and see if you can agree on some form of payment that’s flexible and fits within your budget.


Those Who Recently Declared Bankruptcy

When someone is forced to declare bankruptcy, they find that their credit report is in complete shambles, meaning they’re in a similar situation as those with poor or no credit. They can’t secure a loan for years, making it extremely difficult to make an expensive purchase.

Embarrassed about your situation? There’s absolutely no reason to be, and you shouldn’t be apprehensive about visiting a Buy Here-Pay Here dealership. According to a 2011 report on Edmunds.com, 14.3-percent of the used-vehicle financing market belonged to these businesses, and we’re sure that number has grown in the five years since. There are clear advantages to these dealerships, and customers are recognizing this. If there’s a natural fit, there’s no reason to avoid the business.


Teenagers/College Students

Young car buyers haven’t had time to establish a solid credit report, so they’ll often be denied if they attempt to secure an auto loan. If they’re forced to purchase a vehicle without any help from their family, they may not have any other option than a Buy Here-Pay Here dealership.

Young car buyers may be a bit apprehensive about visiting a BHPH dealership with the fear that they’re going to be ripped off. While the interest rates certainly aren’t attractive and the used cars may be a bit pricey, there’s no reason why you shouldn’t trust these businesses. If you’re particularly skeptical, seek a “no-haggle” dealer. These sellers aren’t going to hide any costs in your final bill, so you’ll receive transparent pricing from the start.

Luckily, as we previously mentioned, purchasing from one of these businesses could be an excellent opportunity for these young buyers to build their credit. Consistent payments will help them establish a solid report, which will certainly pay off in the long run.


Owner of a Beater Vehicle


Blue, rusted truck on a dirt ground with green plants in the background


Perhaps you don’t have a whole lot of money saved up, and you desperately need to replace your beater car. A Buy Here-Pay Here dealership may be the only car seller who will be willing to give you some kind of value for that beat-up vehicle. More often than not, you’ll see BHPH salespeople deduct the value of the beater car from a down payment, thus requiring you to pay less money up front.

This is certainly something to consider, as down payments from these dealerships are traditionally more expensive than your standard, initial fee. You’ll often find that the down payment from these BHPH dealerships covers the entire value of the vehicle, meaning your monthly payments are simply profit. While some people may view this negatively, it’s certainly justified.

Assuming your dealership is willing to pay off the taxes that accompany the purchase of a vehicle, they’re already taking a financial risk on you. Add that to the case where you may not be required to make your first monthly payment, and these dealerships will actually be in the hole after two months. By accounting for the entire price of the vehicle, the dealership is at least ensuring that they won’t lose any money. Considering much of their clientele come in because of shaky credit and questionable credit histories, can you really blame them?


There are several advantages to shopping from a Buy Here-Pay Here dealership, especially if your credit score is struggling. Not only will you be able to secure a vehicle from these businesses, but they’ll even give you an opportunity to improve your credit. For some potential car buyers out there, it’s truly a win-win scenario. Whether you have a poor score, you’re bankrupt, or you’re too young to have established a credit score, you should strongly consider visiting one of these businesses if you need to purchase a car.