Buy Here Pay Here Dealerships: What You Really Need to Know

"Bad Credit? No Problem!" signs scream from the lot, a familiar sight on city outskirts. Read more now on freedom auto sales idaho

The target customer? Someone traditional lenders turn down—those with a bumpy financial history. If a bank has shut the door, BHPH lots crack open a window.

BHPH outfits are a one-stop-shop: car dealer and lender rolled into one. Because they control financing, they’re willing to take risks that others won’t.

It looks simple: Pick a car, sign some papers, and drive away. Choose your ride, cough up a down payment, and hit the road. Payments are made directly to the dealership, often weekly or bi-weekly.

Interest rates here aren’t for the faint of heart.

Don't expect showroom perfection. You’ll find older models with plenty of miles on the clock. You’re paying for wheels, not bells and whistles.

Miss a payment, and the consequences are swift. Most BHPH vehicles come equipped with tracking devices for easy repossession. One missed payment could leave you stranded.

Many BHPH dealers don’t report positive payments to credit bureaus. Always ask if they report payments before signing.

Despite the drawbacks, BHPH meets real needs.  When you need a car yesterday, BHPH delivers.

Caution is your best friend here.  Don’t skip a pre-purchase inspection. Understand repossession terms and late fees before signing.

BHPH dealers are evolving. Customer service is improving, little by little.

Consider BHPH a financial stepping stone. Think of it as a last resort, not a first choice. Your mission: Get better financing down the road.

Haggle over interest rates and down payments. Dealers want to sell—you hold more power than you think.

Consider alternatives first. Credit unions and online lenders may offer better deals. Save for a bigger down payment to expand your choices.

At the end of the day, BHPH fills a need.