Buy Here Pay Here Dealerships

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Buy here pay here, or BHPH, dealerships provide in-house car financing to buyers. This makes them attractive to people with bad credit or no credit, as well as those who may have been turned down for a traditional auto loan. But, like any financing option, it’s important to understand the risks before you sign on the dotted line. Go here :

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The dealer typically won’t run a credit check. However, they may ask for proof of income and residency and require a down payment. It’s also possible that the dealer will sell add-on products, such as warranties and GAP insurance policies, which could increase your monthly payments or total interest paid compared to if you got an auto loan elsewhere.

If you fail to make your payments, the dealer can repossess the car. About 45% of BHPH dealers require customers to install tracking or disabling devices in the vehicle, so that the dealer can find and recover it if you don’t pay your bill. That gives up a measure of your privacy and may not be ideal for everyone.

In addition, not all BHPH dealers report on-time payments to the credit bureaus. If you want to build or repair your credit, you’ll need to make sure your dealer is reporting to the major credit bureaus so that your on-time payments will help improve your score. You can do this by asking the dealer if they report your payment history to the credit bureaus before you sign on the dotted line.