When it comes to purchasing a car, not everyone has the luxury of a perfect credit score or a large down payment. This is where Buy Here Pay Here (BHPH) car dealerships come in. These dealerships offer a practical solution for individuals who may be struggling with poor credit, limited credit history, or financial challenges. Let's dive into what Buy Here Pay Here means, how it works, and what to consider before making a purchase.

What Are Buy Here Pay Here Cars?

Buy Here Pay Here is a type of dealership that offers in-house financing. Unlike traditional dealerships that rely on banks or third-party lenders to provide auto loans, BHPH dealerships both sell and finance the vehicles themselves.

In other words, you buy the car and make payments directly to the dealership. This method is particularly helpful for customers with low credit scores who might otherwise be turned down by conventional lenders. It provides an opportunity for such buyers to secure reliable transportation while also rebuilding their credit—if the dealership reports payments to credit bureaus.

How Buy Here Pay Here Works

• Application and Approval: The dealership evaluates your income and financial stability rather than your credit score. Proof of employment, residence, and income are usually required.


• Vehicle Selection: Based on what you qualify for, the dealership will show you cars within your approved budget.


• Down Payment: A down payment is often required, and the amount depends on the value of the car and the dealership’s policies.


• Payments: Payments are made weeklyor bi-weekly, usually in person or via an online portal.

Advantages of Buy Here Pay Here

• Credit Flexibility: Perfect for those with no credit or bad credit.


• Simplified Financing: No need to deal with banks or third-party lenders.


• Fast Approval: Get approved within hours with minimal paperwork.


• Potential Credit Building: Some dealerships report your payments to credit bureaus, which can help improve your credit over time.

Things to Consider

• Higher Interest Rates: Since BHPH dealers take on more risk, the interest rates are often significantly higher than traditional loans.


• Limited Vehicle Selection: You may be limited to older or higher-mileage vehicles.


• Payment Frequency: Regular weekly or bi-weekly payments can be a burden for some buyers.


• Repossession Risk: Missed payments may lead to quick repossession, as dealers often install GPS tracking and kill switches in the vehicles.

Tips Before Buying

• Review the Contract Carefully: Understand the interest rate, total loan amount, and penalties for missed payments.


• Inspect the Vehicle: Get the car checked by a trusted mechanic before buying.


• Ask About Reporting: Confirm whether the dealership reports to credit bureaus to ensure your payments help rebuild your credit.


• Compare Prices: Even if credit is an issue, try comparing offers from a few BHPH lots to get the best deal.

Listings of Buy Here Pay Here Dealerships (Example)

• JD Byrider: Nationwide chain with multiple financing options.


• DriveTime: Specializes in helping buyers with low credit.


• CarHop: Focuses on affordable used cars with a warranty included.


• Your Local BHPH Dealer: Many independent lots offer flexible terms tailored to your area.