Purchase of a vehicle can be both exciting and frightening. A thorough investigation of the options is needed before choosing a path. The choice between buying a vehicle at a traditional car lot or one from a local buy here-pay here dealership is important for those in the market. BHPH car lot are attractive to some because it is a convenient and quick way to get a car.
But they do have drawbacks, continue reading?
An auto dealership offering in-house financing is known as a buy here,pay here (BHPH). The convenience of doing both at one location eliminates the need for customers to travel to different establishments. Those that have bad credit or cannot obtain a loan with a conventional lender may turn to Buy here pay here (BHPH) car dealerships.
It is easier and faster to clear an auto at a BHPH (buy here, pay now) lot than at other dealerships. That is why buying at such lots is so popular. Since the dealer will handle financing, they do not need to wait on a pre-approval by a financial institution. The dealership will finance your vehicle if it meets the required criteria.
BHPH stock a variety of autos, both old and new. A shopper can narrow the choices down until they find one within their price range that also meets their criteria.
There are some problems with BHPH car lots. In the first place, the interest rates on BHPH financing are significantly higher than those of standard auto loans. This increases the overall cost of owning your car over time. It may be hard for some car buyers to pay the weekly or biweekly installments required by certain BHPH dealers. The BHPH vehicle lots could also have older vehicles with higher mileage.