Buy here pay here car lots are located in nearly every city in the U.S. They look similar to traditional car lots, but they advertise that they are buy here pay here. They can approve your loan on the same day. The average interest rate for a BHPH loan is between 15 and 19 percent.
What credit score is needed to buy a car without a cosigner?
Bhph dealers offer financing to credit-challenged borrowers. These dealers are less demanding than traditional lenders. However, they can charge higher interest rates, charge a higher price for the car, and may have more strict pay policies. They may also repossess the car if the borrower stops making payments.
They require a large down payment. This makes them more expensive than traditional auto financing. You may have to make a weekly, bi-weekly, or monthly drive to the dealership to make your payments.
BHPH dealerships may repossess your car if you stop making payments. These repossessions will show up on your credit report. However, they may not affect your ability to buy another car.
Some BHPH dealers don’t report payments to all three credit bureaus, so you may want to check with them before you sign a contract. BHPH dealerships can also offer you a limited selection of cars. They may only offer you older models that have higher mileage. They may also only provide you with a 90-day warranty.
While BHPH dealers are beneficial to credit-challenged borrowers, there are drawbacks. BHPH dealers may not check your credit report, they may charge a higher price, and they may repossess your car if you fail to make payments.