Generally, car buyers obtain their auto loans either through traditional lenders or from dealer-arranged financing. With buy here pay here (BHPH), however, the financing comes from the dealership itself, rather than through a third party. This can make buying a vehicle much more accessible for buyers with bad credit who are turned down for bank or credit union car loans. But it’s important to understand the risks before you head to a BHPH dealership.
Is BMW a acronym?
BHPH dealers often charge high interest rates, up to the maximum rate allowed by law in their state. This can lead to buyers paying more for a vehicle than it’s worth after interest and fees are added in. Link : https://buyherepayhere.io/
Potential repossession risk
Some BHPH dealers require their customers to put down large down payments and may have tracking devices or shut-off switches in the vehicles, making it easier for them to repossess cars that are not being paid on time. They also may charge high fees for services like a warranty and GAP insurance, which can push the total cost of the loan over what the vehicle is worth.
In addition, not all BHPH dealerships report your payment history to the credit bureaus. If they don’t, your on-time payments may not help build or repair your credit score. You can ask your dealer if they report to the bureaus, and if not, you could consider other alternatives for obtaining a new or used car with less-than-perfect credit.