What “Buy Here, Pay Here” Car Dealerships Mean to Car Buyers

Buy Here Pay Here Dealer Ontario

Despite having poor credit or no credit, do you desperately want to buy a car? No problem, many Canadians are in the same boat. All is not lost, there is still hope. In case 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 entire “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 understand how car dealerships work?

Car Dealerships: How They Operate?

Shoppers have two choices when they shop for a used vehicle. Buy a second-hand vehicle either from a private party or from a 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’re likely to 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 offer customers price cuts through seasonal offers and manufacturer incentives.

What “Buy Here, Pay Here” Car Dealership Means?

Besides selling cars, “Buy Here, Pay Here” dealerships provide in-house financing plans to their customers to make things easier for them. Customers interested in buying a car at a BHPH dealership are not required to get a loan from a bank or lender. Instead, the dealership offers its own financing program.

This program allows dealers to offer their customers a loan so that they can 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 even with bad credit or no credit at all.

0$ Down When You Buy a Vehicle

BHPH dealerships often offer deals that require a down payment of no money or very little money (e.g. 500 dollars or less) on the vehicle.

H3. 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 “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 first and gets approval for financing, 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 a best practice. For those who have been denied to purchase a vehicle by traditional means 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.