Pay Here and Buy Here Decisions

Are you a potential car buyer? Are you aware of the various financing options that you have for a used vehicle? Traditional financing is done through a third-party, which isn’t in business with car dealer. This could be a credit union, savings and loan, or other financial institution. You must have credit score of at least 650 and a cosigner who is acceptable.

However, there are still many financing options that exist in the vast used automobile universe. They can finance people regardless of their credit rating. Sometimes their credit is not good at all or very poor.

This credit type is provided by the buy here-pay here lots. These lots are managed by used car dealers and part of the Buy Here Pay Here Car Program in Canada and the US. The program helps buyers who are in desperate need of a car but don’t have the means to finance traditional vehicles.

These are the pros and disadvantages of purchasing a used vehicle under the program.

Buy here, Pay Here Lots literally means you ‘buy there’ and most likely pay here’ both at the same time. This financing program has been nicknamed BHPH. One of the options under BHPH is to apply online using an online credit application. You will receive the credit application via email to your local participating dealers. They have the choice of either accepting or declining it. Once the credit application is accepted by a dealer, you will receive notification. You will be able to visit the dealer and select a car.

You may also visit a participating car dealer under the program. Before you begin your search for a new car, they will ask you to fill in an application for financing. This allows you and your dealer to agree on the amount you can afford for a vehicle. You may not be eligible to purchase the special car that you have chosen.

It is important to understand what happens if your payment is not received on time. Because this is a pay here’ deal, you will need to physically deliver your payment directly the dealer. In general, you will need cash or money orders. If you fear that you will have to make late payments, then you may need to reconsider your need for a new vehicle. Accept the fact that you will end up with a car that is a little older than what was originally planned.

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