The Ultimate Guide to “Buy Here Pay Here” Dealerships: Tips, Advantages, and FAQ
Purchasing a vehicle can be a stressful and time-consuming process. Sometimes it’s hard to know where to go, what questions to ask, and how to determine if you’re getting the best deal. If you’re looking for a new car, but don’t have enough cash to pay for it all, it’s a good idea to familiarize yourself with your options so you can navigate the world of “Buy Here Pay Here” (BHPH) dealerships. Airport Auto Sales, a leading buy here pay here dealership, offers low monthly payments and provides a great alternative for people who may lack credit history or don’t have the money for a down payment. Additionally, these dealerships often offer better customer service than traditional car lots, as they cater exclusively to buyers who need help with financing. In this comprehensive guide, we’ll provide tips and advantages of this financing method, as well as answer some frequently asked questions.
Tips for Buying a Used Car at a Buy Here Pay Here Dealership
Do Your Research
As with any car purchase, it’s important to do your research and compare prices before settling on the right vehicle. When it comes to choosing a BHPH dealer, not all are created equal. Some will offer better deals than others, but if you want the best deal, you should definitely head to Airport Auto Sales to find your next used car.
Know Your Credit Score
One of the most important factors in determining what vehicle you can buy and how much your monthly payments will be is your credit score. Keep in mind that many BHPH dealerships, like Airport Auto Sales, are more likely to approve your purchase if your credit score is low. However, this doesn’t mean you should buy a car you can’t afford just because the dealer is willing to finance you.
Know What You Can Afford
It’s important to be realistic about what you can afford when buying a car from a BHPH dealer. The fact that a dealer is willing to finance you does not mean that you should buy a car whose cost is out of your budget. Remember that you will also have to take into account the cost of gas, insurance, and repairs, in addition to the monthly car payments.
Get a Car History Report
Before buying any car, it’s always a good idea to get a history report on the car. This way you will know if that particular car has been involved in an accident or if it has had a serious mechanical problem. At Airport Auto Sales, it will not be necessary for you to request it since they take care of offering it in all cases.
Advantages of “Buy Here, Pay Here” Financing
Applying for dealership credit is easy and hassle-free. The purchase process and obtaining financing are part of a single package. Paperwork is minimal and all future payments are made directly to the dealer. This can be a huge advantage in terms of convenience since you will not have to deal with intermediaries or carry out separate procedures.
When you apply for car financing, you don’t always receive an immediate decision. This is especially true if you have a low credit score, have no credit history, or do not have adequate proof of income. At Airport Auto Sales, a dealer with BHPH financing, you’ll know immediately if you’re approved for a loan and the loan approval amount. This will allow you to expedite the process of buying your used car, saving you time and hassle.
Little or No Money Down
Many BHPH loans require little or no money up front. You can secure this type of loan with a small amount of dollars. If you dream of affording a car but don’t have the resources to save the funds for it, this is one solution. It is even possible to get some offers with no money down. This can be very beneficial for those people who do not have savings but do have the ability to pay a monthly payment for their used car.
Financing for Those with No Credit History or Low Credit Score
The biggest advantage of BHPH financing is that they don’t look at your credit history or credit score. You will not be turned down for a loan because you have no credit history or a low credit score. With proof of address and proof of income, you can get financing for the car of your dreams. Although BHPH dealers, like Airport Auto Sales, usually sell low-end used cars, you can find a wide variety of makes and models, even newer cars. The used car offer is extremely varied, and you can get a car that meets all your expectations.
Top FAQs about Buy Here Pay Here Dealerships
- What is a Buy Here Pay Here dealership? A Buy Here Pay Here (BHPH) dealership is a car dealer that offers in-house financing for customers who may have poor or no credit history. This means that the dealership acts as both the seller and lender, allowing customers to make their car payments directly to the dealership.
- How do Buy Here Pay Here dealerships work? BHPH dealerships work by providing financing to customers who may not qualify for traditional loans due to poor or no credit history. They typically require a down payment and proof of income, but they do not rely on credit scores to approve loans. Customers make their car payments directly to the dealership, usually on a weekly or bi-weekly basis.
- What are the benefits of using a Buy Here Pay Here dealership? Some benefits of using a BHPH dealership include easy financing approval, immediate decisions, less paperwork, and the ability to rebuild your credit over time by making timely payments. BHPH dealerships, like Airport Auto Sales, also offer a wide variety of used cars to choose from, catering to different budgets and preferences.
- What are the drawbacks of using a Buy Here Pay Here dealership? Some potential drawbacks of using a BHPH dealership include higher interest rates and the possibility of paying more for a vehicle due to the added financing costs. Additionally, some BHPH dealerships may have a limited inventory compared to traditional dealerships.
- Can I trade in my current car at a Buy Here Pay Here dealership? Yes, many BHPH dealerships, like Airport Auto Sales, accept trade-ins as a form of down payment towards your new vehicle. This can help reduce the amount you need to finance and lower your monthly payments.
- Do Buy Here Pay Here dealerships report to credit bureaus? Some BHPH dealerships report to credit bureaus, which can help you rebuild your credit by making timely payments. It’s important to ask the dealership if they report to credit bureaus before finalizing your financing agreement.
- Can I get a warranty on a car from a Buy Here Pay Here dealership? Some BHPH dealerships, like Airport Auto Sales, offer warranties on their vehicles. The terms of the warranty may vary, so be sure to ask about the specific details before purchasing your car.
- Are there any fees associated with Buy Here Pay Here financing? There may be fees associated with BHPH financing, such as processing fees, late payment fees, or early payoff fees. Be sure to discuss these fees with the dealership and review your financing agreement carefully to fully understand any potential costs.
- How can I find a reputable Buy Here Pay Here dealership? To find a reputable BHPH dealership, start by conducting online research to read reviews and testimonials from previous customers. You can also ask for recommendations from friends or family members who have used BHPH dealerships. Airport Auto Sales is a reputable BHPH dealership known for its excellent customer service and wide selection of used cars.
- Can I refinance a Buy Here Pay Here loan? Yes, it is possible to refinance a BHPH loan. After making consistent, on-time payments and improving your credit score, you may be eligible for a traditional auto loan with a lower interest rate. Refinancing your BHPH loan can help you save money on interest payments over time.
In conclusion, Buy Here Pay Here dealerships, like Airport Auto Sales, provide a valuable service for those with poor or no credit history who are in need of a vehicle. By understanding the tips, advantages, and common questions associated with BHPH financing, you can make an informed decision and find the right car for your needs. Remember to do your research, know your credit score, be realistic about what you can afford, and always ask for a car history report. Happy car shopping!