Buy Here Pay Here Dealerships
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Buy here pay here, or BHPH, dealerships are used car dealers that offer in-house financing. This type of lending has drawbacks for borrowers and is not always the best option.

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BHPH dealers often work with borrowers with poor credit and do not offer the same protections as traditional auto lenders. This includes less leeway on missed payments and a higher risk of repossession.

These dealerships also often charge higher interest rates than traditional lenders. The extra risk posed by borrowers with bad credit requires them to charge more to make up for the risk. Find out :

Many BHPH dealerships require weekly or bi-weekly payments, rather than the monthly payment many traditional lenders offer. This may be difficult for borrowers who are paid on a different schedule and can lead to missed payments.

Some BHPH dealers may add expensive “gap insurance” or warranty policies to the loan, increasing the total cost of the vehicle. This is another way these dealerships increase their profits and is something to consider carefully before committing to this type of financing.

Lastly, these dealers typically only finance cars with low resale values. This will limit the number of vehicles you can choose from and could mean that your new car may be worth less than you owe on it if you need to sell or trade it in later. This could leave you with negative equity and can be difficult to manage. It’s best to work with a traditional lender or car dealer that works with people with all kinds of credit scores.