For those who want to buy a new car, you have probably heard of the buy-here and pay-here finance. But what is buy-here pay-here close to me and how does this work? Please allow me to simplify these things so that you understand – click for source.
Many car dealers offer financing that is known as “buy/here, Pay-here” or BHPH. These dealerships make it possible to purchase and finance a car at one location. This is a practical solution if you don’t have the credit score or poor credit to get traditional financing.
It’s fairly easy to finance BHPH. At BHPH, you will choose the vehicle you would like to purchase. The dealership will do a credit check, and then decide on the terms and the interest rate. Unlike conventional financing, BHPH dealer do not use third-party lender. Alternativly, they can offer financing in-house.
Once you have been accepted for financing, you will need to pay the dealer directly. These payments may be made online, in person, or by mail. The term of the loan and the interest rate will be decided by the dealership and credit history. Remember that BHPH financing has higher interest rate than regular lending and is meant for high risk borrowers.
The down payment is another aspect of BHPH funding that you need to be aware. BHPH dealerships require a down payment. The dealership where you are buying the vehicle and the amount of down payment required will differ. It is often expressed in percentages of the purchase price.
It is vital to fully understand the terms and conditions of the loan before signing any documents. Before agreeing to a purchase agreement, you should understand the interest rates, loan terms, and down payments. You can then use BHPH financing, but you will need to have some knowledge and plan.