Has it ever happened to you that you need to purchase a car, but on an extremely tight budget and you wonder if “Buy Here Pay Here” could be an option? Maybe you, as a car buyer, are not able to find any other avenue to help support your purchase and, some notorious beliefs about Buy Here Pay Here are driving you confused. Looking at the high-interest rates, mediocre quality of vehicles and bi-weekly payment conditions, multiple critics are alleging BHPH as “rip-offs”. Setting these beliefs apart for a while, let's find out the good reasons for which BHPH dealership has been enticing more and more used car shoppers and making massive profits. You never know, in the moments, when you have been rejected by every other means of assistance, you could really withstand a new or used car purchase with help of a Buy Here Pay Here dealer.
Opportunities For Credit-and-Financially-challenged Costumers
There are pretty good options allowing you to borrow money from dealerships and to get purchased a new or used car quite easily that cater to your vehicle needs efficiently. But wait a moment; it is the case unless you have not a bad credit score! The opportunities are almost none for customers who are credit-or-financially-challenged. And perhaps the reason behind BHPH dealers have a gush of buyers is this that they not only target such customers who have poor credit but also in most cases, provide them with a suitable used car. Even these customers know how big the opportunity is where they are made able to buy a car when they have already been denied, rejected or mocked at by major dealers with big names and repo.
Affordable Down Payments
The large chunks of down payment can really leave customers in a precarious financial situation. This must be true when you, the customer, deal with big dealerships, especially when you’ve been stretching out your every dollar to meet your ends. Typically, the amount revolves around $1500 as down payment with an average or major dealer. Contrarily, a Buy Here Pay Here would require you to make a down payment of only $500 or $1000; and $1000 could be a requirement only in rare conditions. Some BHPH can even go beyond this by holding a vehicle for you only with a small security deposit which later has to be combined with the down payment amount.
No Third-Party Financing and Payments
When you buy from a Buy Here Pay Here dealer, you don’t need to deal with a third-party lender for payments and financing. A BHPH dealer has in-house financing department, financing you on their own terms and conditions, meanwhile also, tailoring to your unique purchasing needs. Now you are confronting a bad credit situation that means you lack financial security. This is a known ‘drawback’ which your BHPH will be compromising with; he would rather ask for high-interest rate and that’s a downside for you. But then, this is an acceptable norm that all of those industries perform which transact with customers facing a poor financial situation or have a low credit score. Don’t the credit card industries have the same criteria for assisting high-risk customers? After all, it is the only security by which lenders will account your financial credibility.
The Final Word
The final word is this – The Buy Here Pay Here industry is outgrowing its big-name counterparts because it is providing financial assistance to those customers who are in credit-jeopardy and those who have been turned away by other reputed dealers – And that's the reason the BHPH has secured a significant place in the automotive market. Apparently, there is criticism for about everything that shows up and is of some great contributions – whether it is supermarkets or Obamacare; so just ignore it. Do your own research, compare the available options and analyze your own needs; come up with a solution that’s the best for you. After all, Buy Here Pay Here is reinforcing credit-troubled-consumers who otherwise have no option left with them.