BHPH (Buy Here, Pay Here) dealerships are used automobile dealerships that allow car buyers to finance cars. These dealerships have a reputation for being very honest and trustworthy. However, there are a few things that buyers should know before deciding to finance a used car at a BHPH dealership.
What does BHPH stand for?
First, many Bhph near me do not report to credit bureaus. This means that you should ask the dealership if they report to the credit bureaus before making a purchase. If the dealership does report to credit bureaus, you should be prepared to pay more in interest.
The second thing that you should know is that BHPH financing is often very costly. The average interest rate at a BHPH dealership is usually between 15 and 19 percent. While the average rate at a BHPH dealership may seem high, it is actually very affordable when compared to other financing options.
BHPH dealers also don’t consider your credit score. Instead, they evaluate your income and financial situation to determine whether or not you can afford a monthly payment. Many BHPH dealers also offer smaller down payments.
BHPH dealers often require you to have a stable address. The lender may also require you to fill out forms. Ideally, you should make all payments on time to enhance your credit record. If you have a good payment history, you may be eligible for a payment modification plan.
BHPH dealers typically buy older cars. If you have a subprime credit score, you may be able to get approved for a higher interest rate. These rates are usually double the standard rate.