What Are Buy Here Pay Here Car Dealerships?

Posted Tuesday, Dec 19, 2023

Buy Here Pay Here

If you are looking into purchasing a used car, you know how overwhelming the options of dealerships can be. Buy here pay here car dealerships are a popular option for getting your new vehicle. In this article, we will share with you everything you need to know about buy here pay here car dealerships from A&JC autos. At a traditional dealership, an auto lender receives the contract you sign with a regular vehicle dealership and uses it to provide a loan for the purchase. In a buy here, pay here (BHPH) dealership, on the other hand, the cars are financed and sold by the dealer Dealerships for BHPH vehicles specialize in working with customers who have no credit history at all or terrible credit. They can offer an opportunity that specific borrowers may find challenging elsewhere.

But before you think about working with a BHPH dealer, weigh the advantages and disadvantages of doing so.

Advantages Of Buy Here Pay Here 

Credit-challenged borrowers may be accepted If their credit is poor or they haven't had the opportunity to. You might believe financing a car through a dealership is unfeasible if you have a credit history. However, approval requirements with BHPH dealerships are less stringent than those with conventional lenders.

The procedure is straightforward: After you drive off the lot with a car purchased from a BHPH dealer, the whole financing and purchasing process is over. Even with traditional dealerships, the loan application procedure can be very out, particularly if your credit is not good.

Cons Of Buy Here Pay Here 

The price is high: BHPH dealers typically charge higher rates than standard car lenders since they only work with customers who have weak or no credit, as opposed to traditional auto lenders that work with consumers who have a mix of credit types. Based on the dealer, you should anticipate a lack of funds, which will restrict the cars you can choose from. 

Selection is limited: BHPH dealerships first verify your eligibility before displaying the automobiles you qualify for, as opposed to having you choose a car and then discuss finance. This implies that compared to a regular dealer, you might have fewer possibilities.

Prepare to put down a sizable sum of money: There is a certain risk involved in working with borrowers who have poor credit. BHPH dealers usually demand a higher down payment than a standard dealership may anticipate in order to assist in reducing that risk. Your options for cars will be more limited if you don't have much money on hand.


How Do Dealerships That Offer "Buy Here, Pay Here" Impact My Credit Score?

If you make consistent, on-time payments, A&JC Autos Cars auto lender will report your payment activity to credit reporting agencies, which can raise your credit score. However, that isn't usually the case with BHPH dealerships, particularly if it's a small business for which filing taxes would be prohibitively expensive. A&JC Autos does, however, provide the credit agencies access to your payment history.

However, contacting a BHPH dealer to ask for a loan is probably not going to have a negative effect on your credit score either. When you apply for a loan, many of these dealers don't complete a credit check, so there won't be a hard query on your credit report.

Second-Chance Vehicle Credit

Second-chance auto loans are loans created especially to assist borrowers with poor credit in obtaining the necessary funding. Second-chance auto lenders generally consider your income and costs, residency, work stability, and other variables when determining your eligibility rather than just your credit score. They will help you get back on track more quickly and raise your credit score compared to the alternatives.

Which vehicle lots are buy here pay here?

Car showrooms that offer a "buy here, pay here" option are widely available in nearly all American cities. Anybody who has ever driven down a highway and glanced out the window has probably seen a lot like this one for secondhand autos.

A BHPH dealer generally resembles a typical vehicle lot in appearance. These lots frequently have signed on or close to their business that declare they are, in fact, buy here pay here, or, in a more subtle way, that they finance or handle in-house financing. Put differently, a car dealership that displays a sign saying "buy here, pay here," "we finance," or "no credit check" is probably a BHPH vendor. 

These vehicle lots are easily located with a brief web search. Searching for "buy here pay here near me" will provide the dealers who are nearest to you, making it simple to locate one nearby. You can also go the traditional route and search your city for car dealerships that provide in-house financing.

In addition, a lot of used car dealers allow you to pay cash for a car, which is something that many people do to save themselves the trouble of possible late fees and finance penalties.


As shared in this article, Purchase Here, Pay Here (BHPH) is a type of car dealership where the dealership itself provides the loan for the vehicle. Your auto payments are made to the dealer directly, not the bank.

In reality, during the last fifteen years, BHPH dealers have become more and more well-liked, and this trend is probably going to continue. If you are looking for the best option when buying a used car and think that PHPH may be right for you, contact us at A&JC Autos today for more information. 


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