Many people do not know what Buy Here-Pay Here Car Dealerships are until they need them. The purpose of this article is not to explain the BHPH dealer or car lot, but how they are different from the typical automobile dealer. I will provide a glimpse into the BHPH business model. It includes how they sell and finance automobiles, as well as how they acquire and secure them.
Let’s start by saying that the Buy-Here/Pay-Here car dealer’s main focus is to sell and finance automobiles to people who have bad credit and cannot finance or buy them through traditional dealers. They do this by selling used cars and financing them in-house through the selling agent. They don’t have to use banks, finance firms or third-party lending. They offer Buy Here, Pay Here to customers who purchase the car as well as the weekly payment.
Establishing a Buy Here/Pay Here Car Dealership
Some BHPH dealers are small shops that open up in a corner lot. To accommodate customers who cannot qualify for an auto loan through their usual lenders, some car dealers have started a Buy Here/Pay Here division. As you can see BHPH car dealerships come in all shapes.
Listings for the BHPH Dealership
The BHPH small-to-mid-size car dealer is always looking for vehicles that they can sell on their lot. They are open to buying cars from private seller, auctions, and trade-ins. They are strict about the cars they choose because they have to make cash. Also, they need many cars to stock their lot and keep customers happy with a large selection.
If a dealer has a Buy Here Pay Here Department, they will often sell their quality trades-ins in the BHPH Division. It’s a good idea to sell your trades with financing in-house. This is because you have a steady source for used vehicles and can avoid going to the auction.