Buy Here Pay Here Dealerships – Cincinnati, OH

Factoring Your Credit Score

Before you consider shopping at any kind of dealership, it’s important to figure out your credit score.

First, check your credit card and other loan statements, considering that many major credit card companies and auto loan companies have begun to provide credit scores for their customers on a monthly basis. Alternatively, you could log into your account online.

Secondly, you could always consult a non-profit counselor to get a free credit report and score, as well help reviewing both.

Third, and perhaps the easiest way, is to simply use a third-party credit service such as Credit Karma to get your credit score. It might differ from what you get at the dealership (since they give you a score based on other factors) but it will give you a ballpark idea of where you stand.

Now, while it’s good to have your credit score before you go to the dealership, it’s important to note that buy here pay here dealerships will figure out your credit score for you, in-house, via a member of their financial team. Unlike a traditional dealership, which would consult another credit score source, or follow-up on the one that you’ve provided.

That’s not the only difference between buy here pay here dealerships and traditional dealerships, though.

What is a Buy Here, Pay Here Dealership?

A BHPH dealership is a more unique type of dealership. It may seem like everything is done backwards, and there’s a reason for that.

The typical BHPH process involves getting your credit score factored with a member of the dealership’s financial team, who will then discuss it with upper management. After that, a sales associate will come with you and show you the cars that you’re able to purchase.

Why do I say able to purchase? Simply because if you go to a BHPH dealership, then you either have subprime or no credit to your name. Therefore, you don’t get to pick and choose the type of car you want. Instead, you have cars chosen for you based on what you can afford and your credit score.

Why? It’s so you don’t end up biting off more than you can chew, and also a way for the dealership to help protect themselves. After all, they deal with many bad credit or no credit consumers. Therefore, there is a higher risk of a customer defaulting on a loan, missing payments, and many other ways that could end up being costly to the dealer.

While this is a stricter and less fun way to buy cars, it’s important to remember that going to a BHPH dealership is a last resort for those with bad or no credit. Furthermore, it’s important to go in with the mindset of getting what you need, not what you want.

If you’re at a buy here, pay here dealership, you aren’t in any position to shop based on fun features. Therefore, you also need to be mindful of the options the dealership presents you. If you’re approved for a vehicle that’s worth $10,000 that has leather seats, but also have the opportunity to buy a vehicle without leather seats for $8,000, which one do you think you should buy? Obviously, the one for $8,000 which allows you to then pocket the other $2,000 for repairs, or to get a jump start on your payments.

A Unique Car Shopping Experience with Many Benefits

While this might seem like a negative experience, it’s actually a unique car shopping experience that’s able to provide many benefits for bad credit or no credit consumers.

For starters, it’s a place for people to get a car who would otherwise be unable to through conventional means.

Secondly, it’s a great way to get a start on building your credit back up. Since BHPH dealerships are still held to the same standards as conventional dealerships, BHPH dealers need to report loan payment progress to the credit bureaus. Because of this, your credit score will eventually start to rise.

But, only if you are making on-time payments. Which leads me to my third point: BHPH dealerships are also a great way for no or bad credit consumers to build financial discipline as far as making regular, on-time payments.

Fourth, it might seem like a drawback, but having everything done for you in-house means there’s a lot of stress taken off your back. Instead of running around and trying to find a loan yourself, or worry about shopping for a car that you can actually afford, the BHPH dealer does all of that for you.

So yes, it’s a unique experience, but one that’s able to provide the buyer with many benefits.

Who Should Go to a Buy Here Pay Here Dealership?

Who should go to a BHPH dealership? The person who knows they have terrible credit (deep subprime) or no credit whatsoever, and have searched everywhere else. It’s important to realize that a BHPH dealership is still considered a last resort for those who are unable to find a car anywhere else. Therefore, make sure you keep that in mind when making a decision.

Who Shouldn’t Approach BHPH Dealerships?

Who shouldn’t go to a BHPH dealership? Someone who doesn’t have credit worries, and is able to get a car loan through other outlets. Why? Simply because this would help you more than hurt you. Even if it sounds nice to have someone walk you through step-by-step and make the decisions for you, it’s important to note that they are primarily there to help bad credit consumers. Therefore, they might not even take you.

More importantly, BHPH dealers charge higher interest rates on their loans in order to cover themselves if someone decides not to pay the loan off, and they need to take back the vehicle. Therefore, you’d be spending an unnecessary amount of money. Finally, while the used cars are still in good condition, they don't have the same assurances as a certified pre-owned vehicle that someone with good credit has the potential to purchase.

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