What Sets a Buy Here Pay Here Dealership Apart From Others

“Buy Here, Pay Here” licensed under “CC By-SA 2.0” by Mike W.

When you’re in the process of purchasing a used or certified pre-owned vehicle, choosing to shop at a buy here, pay here (BHPH) dealership can help you finance your next ride without having to worry about how your credit history might affect your ability to get an auto loan.

These unique dealerships cater to individuals who have low credit scores or no credit history and may not qualify for financing offers from traditional lenders, like banks or large financial institutions.

Unlike a traditional dealership where customers sign a dealer contract for an auto lender who provides the loan, BHPH dealerships finance and sell cars directly to customers. In doing so, they help provide a unique opportunity to borrowers who may have a hard time finding a vehicle elsewhere.

If you need a replacement vehicle and your credit history isn’t in the best shape, consider shopping at a dealership that offers in-house financing like North Coast Mitsubishi of Akron.  Our experienced finance department is happy to provide you with more information about your loan options.

Benefits of Purchasing a Vehicle at a Buy Here, Pay Here Dealership

There are many benefits to purchasing a vehicle at a BHPH dealership over a traditional one:

More Approvals for a Wider Variety of Borrowers

Many factors can affect a person’s credit history, and not all of them are directly in his or her control. Sometimes, a single missed payment caused by an unexpected layoff or a declaration of bankruptcy can lead to a much lower credit score. With BHPH dealerships, these borrowers can still have an opportunity to secure a quality loan. Younger buyers who haven’t had the chance to build their credit history can also finance their new vehicles more easily, thanks to the dealership’s lower approval standards. They can also use a payment plan to build up their credit for future large-scale purchases.

An Easy and Efficient Process

Purchasing a vehicle at a BHPH dealership typically requires minimal paperwork, especially compared to a traditional dealership which often requires buyers to complete a variety of forms before they’re able to drive out of the lot. This happens because BHPH dealerships don’t require all buyers to complete a credit application, submit a pre-approval form, or undergo a credit check. While some dealers may require buyers to provide proof of residency and insurance, others only require you to submit personal information online. Buyers can drive off with their new ride without needing to spend hours filling out forms.

A Streamlined Trade-In Process

While both traditional and BHPH dealerships accept vehicle trade-ins, many of the latter also provide instant cash offers, regardless of the type of vehicle a borrower has or its condition. Buyers don’t have to wait to purchase a new one: They can often trade in their old one and take home the next vehicle on the same day. (Private party sales and traditional dealerships, however, can sometimes take a few days or weeks.) Trade-ins also ensure that buyers can get fairer prices, regardless of the time of year.

More Flexible Financing Options

Traditional dealerships often require interested buyers to undergo an extensive credit check before applying for an auto loan. By contrast, BHPH dealerships allow buyers to get the vehicle they want without worrying about their credit. They also offer a variety of flexible financing options, depending on the specific needs of individual buyers. To gain access to financing, all buyers typically need to do is provide proof of income and insurance or personal information, and they gain instant access to several types of auto loans.

An Ability To Create Your Own Payment Schedule

Many BHPH dealers recognize that it can be more difficult for certain buyers to adhere to a set payment schedule. While buyers who apply for financing through a traditional dealership may have a strict monthly payment schedule, BHPH buyers can often enjoy a little more flexibility. Instead of a monthly payment, for example, they can instead opt for a smaller, more manageable weekly or even biweekly plan with payments that go directly to the dealer.

Fewer Middlemen

Traditional dealers arrange financing options for buyers using their existing relationships with banks. The bank lenders are ultimately who decide whether an application receives a loan, plus the types of loans that are available, plus their payment schedule and interest rates. By contrast, BHPH dealership buyers only exchange information with the financial department instead of a middleman, like a bank. This better positions you to make negotiations and find the best loan for your circumstances.

Services Tailored To the Needs of Each Buyer

BHPH dealers recognize that every buyer has their own unique situation that requires a unique process tailored to their specific needs and preferences. Buyers who are often under-represented in traditional markets solely because of their income level, employment history, or age can enjoy the benefits of a more streamlined buying process. They can more readily compare and contrast different financing offers based on their budget, financial history, and long-term goals.

Contact a BHPH Dealership in Bedford, Ohio

There are certainly many reasons why individuals finance their vehicle with a BHPH dealership instead of a traditional option. If you’re in the market for another vehicle and you desire more flexible in-house financing options, contact our team at the North Coast Mitsubishi of Akron.

Whether you’re a college student wanting to ride to class in style or a professional with a long commute, the staff at our friendly finance department offers many flexible rates, regardless of your credit history or background. We look forward to helping you leave our car lot with the pre-owned vehicle you’ve always wanted.