What “Buy Here, Pay Here” Car Dealerships Mean to Car Buyers
What “Buy Here, Pay Here” Car Dealerships Mean to Car Buyers
Posted on August 10, 2023
Do you desperately want to buy a car despite having poor credit or no credit? No problem; many Canadians are in the same boat. However, all is not lost; there is still hope. For example, if your credit score isn’t high enough or the bank has turned you down, you could try a “Buy Here, Pay Here” dealership and buy the vehicle without obtaining a bank loan.
The 401 Auto Financing company in Ontario can get you the car you want with an easy car loan. They understand the frustration of people who cannot obtain a car loan because of bad credit history. The experts at 401 Auto Financing company will guide you throughout the “Buy Here, Pay Here” process (aka BHPH) and get you driving. So, what does “Buy Here, Pay Here” mean? Before understanding BHPH, you need to know how car dealerships work.
Car Dealerships: How They Operate?
Shoppers have two choices when they shop for a used vehicle. First, buy a second-hand vehicle from a private party or car dealership.
Dealerships act as the go-between for auto manufacturers and the public. They buy cars directly from car manufacturers and sell them to the public, making a profit. When purchasing from a private individual, unless the seller is willing to negotiate, you will likely spend the same as the seller’s asking price for the car. Dealerships, on the other hand, can offer you better price flexibility as they often need to move old inventory ASAP to make room for new models. In addition, dealerships can provide customers with price cuts through seasonal offers and manufacturer incentives.
What does a “Buy Here, Pay Here” Car Dealership Mean?
Besides selling cars, “Buy Here, Pay Here” dealerships provide in-house financing plans to their customers to make things easier for them. For example, customers interested in buying a vehicle at a BHPH dealership are not required to get a loan from a bank or lender. Instead, the dealership offers its financing program.
This program allows dealers to offer their customers a loan to buy a car from the same dealer using the loan money. Customers are required to make monthly payments to BHPH dealerships over the period of the loan. An example of a BHPH dealer in Ontario is 401 Auto Financing since they directly lend customers money for a purchase.
Advantages of “Buy Here, Pay Here”
Here are some advantages of these kinds of dealerships.
- Get a Car With No Credit
One of the best things about BHPH dealerships is that people can buy a car with bad credit or no credit. - 0$ Down When You Buy a Vehicle
BHPH dealerships often offer deals that require a down payment of no or very little money (e.g. 500 dollars or less) on the vehicle. - Easy and Fast Process
A vehicle can be purchased, financed, and paid for in installments at the dealership, where it was purchased quickly and easily.
How do “Buy Here, Pay Here” Dealerships Differ?
Traditional dealerships require a buyer to select a car on the lot first, then go to the bank for financing. With “Buy Here, Pay Here,” the buyer meets with the finance expert, gets approval for funding, and then goes to the sales lot to choose a vehicle.
Nowadays, however, many traditional car dealerships also offer in-house financing. Although they don’t explicitly state that they represent BHPH, one cannot avoid seeing signs like “Financing Here” or “We Finance” at the dealerships.
Bottom Line: Is BHPH a Good Approach?
Reviewing all the options before buying a car is the best practice. However, for those who have been denied the purchase of a vehicle due to bad credit or no credit history, the BHPH dealership might be the right choice for them.
The 401 Auto Financing Company provides the best auto loans in Ontario. Contact them now and get details and step-by-step guidance about bad credit auto loans and financing. Your loan may be approved within just a day, and you have thousands of vehicles of all makes and models to select from.
We Make Auto Financing Easy