People with poor credit who are in need of a car can get financing through buy here pay here (BHPH). How exactly do transactions in BHPH work, read more? Before you start looking for car lots that buy here, pay here near you, let’s examine the details.
Step 1: Locate a BHPH dealer.
The first step in the BHPH financing process is to find a dealership that offers financing. These dealerships are easy to identify because they prominently display “Buy here Pay Here” or “No credit check” on their lot and website.
Step 2: Choose a vehicle
BHPH dealerships often offer a smaller selection of cars than traditional auto loans. However, they are more open to discussing credit and willing to work with you in order to find the right car for your requirements and budget.
Step 3: Let’s discuss the cost
Due to BHPH retailers charging higher interest rates than conventional lenders, the total cost of the car could be much higher than you anticipated. Ask about any fees or additional charges that may be applicable.
Step 4: Submit your loan application
If you are happy with the interest rate or other terms, it is time to close the loan application. This typically involves disclosing personal financial and personal details such as your income, employment history and credit score (if applicable).
Step 5: Make your down payment.
Depending on the vehicle cost and dealership criteria, this BHPH downpayment can run from a few hundreds to several thousands of dollars.
Step 6: Sign your loan agreement.
This document will detail the conditions of the loan.
Step 7: Complete your payments
Monthly payments are common at BHPH dealerships. These can usually be done over the phone, in person, or online. Pay your bills on time to avoid fines or foreclosure.