It's important to know about all your options when buying a vehicle. A buy here, pay here dealership can provide options, especially if you have less than desirable credit scores. It can make it easier for you to buy a vehicle and get the financing that you need - even when traditional banks have told you "No."
What is a Buy Here, Pay Here Dealership?
A buy here, pay here (BHPH) dealership is exactly what it sounds like - you buy the car at the dealership, and you pay for the car at the dealership. It means that the financing is done in-house so there's no need to get a third-party lender involved.
In most instances, BHPH dealerships sell used cars. One of the reasons is because of the lower values. It reduces the risk from the dealer's perspective.
Traditional dealerships deal in new or high-valued used cars. The higher values require higher loans, which can be riskier for a dealership to offer in-house, especially when a person has a low credit score.
BHPH dealerships gained popularity in the 1970s. They would ask for a down payment that was more than what they would profit from the sale of the car. This would ensure they made their money no matter what. And if a customer couldn't make the payments, they would repossess it and sell it to another buyer.
How Does This Type of Dealership Work?
Getting a loan for a car can be difficult, especially if you have bad credit or no credit history at all.
If you have tried to get a traditional loan and been denied, visiting a BHPH dealership may be your only option - especially if you cannot buy a vehicle outright with cash.
A BHPH dealership is a bit laxer when it comes to credit scores and such. Since the financing is being offered in-house, they don't have to adhere to the same lending guidelines as banks.
Some dealerships may only ask for a few paycheck stubs without ever running a credit check on you.
There are both pros and cons of buy here, pay here dealerships.
The pros:
- You don't need a great credit score.
- It's one of the easiest processes to get approved.
- Trade-ins on older vehicles are accepted.
The cons:
- Interest rates may be higher.
- You'll need to have money for a down payment.
It's important to remember that one of the biggest differences between traditional dealerships and BHPH ones is how they make their money. Traditional dealerships make money based on the sale of the vehicle. BHPH dealerships make money by selling the vehicle as well as the interest made on providing you with a loan.
How Glockner Family of Dealerships Can Help
Buying a vehicle can be a great way to gain independence and ensure that you always have reliable transportation. If you have had financial woes in the past or simply don't have a credit history, it's possible to get help with financing.
At Glockner Family of Dealerships, we have an array of options to help you find a great car and an affordable payment.
Whether you want to buy new or used, we offer Glockner Auto Credit to all our customers throughout Southern Ohio. Our goal is to provide 100% credit approval every day. It can help to eliminate the stress when you're shopping for a vehicle knowing that no matter what your credit score looks like, you can get approved for a loan.
We offer a fast and easy credit approval as well as a fair interest rate. This means that our interest rates are going to be a lot more manageable than your average buy here, pay here dealership. More importantly, we report to the credit bureaus, which means that buying from us can help you to rebuild your credit with every on-time payment that you make.
With dealerships throughout Portsmouth, Chillicothe, Jackson, and beyond, we have the inventory that you need. It allows you to find a car, truck, SUV, or minivan that suits your needs. And we'll work with you to find one that also fits your budget.
We pride ourselves on our inventory as well as our no-fear approach to financing.
If you don't want to deal with a less-than-ideal BHPH dealership, stop in to see what the Glockner Family of Dealerships can offer you.