Inside the Buy Here Pay Here Car Dealership

Many people are not familiar with Buy Here Pay Here Car Dealerships until they have a dependence on them. The point of the article would be to shed some light on the way that the BHPH car lot and auto dealer operates and how they differ from the standard automobile dealer. I’ll give you a look inside the BHPH business model and how they sell, finance, acquire and secure automobiles.

To provide you with some background the primary focus of the Buy-Here Pay-Here car dealer is to sell and finance vehicles for people that have bad credit and are unable to buy and finance automobiles through traditional dealers and lenders. They do that by selling used vehicles and financing them in-house or through the selling dealer. They don’t really use banks, finance companies or alternative party lenders. Their customers choose the car and make the weekly payments at the same place, hence Buy Here Pay Here.

Setting-Up the Buy Here Pay Here DEALERSHIP

Some BHPH car dealerships are small corner lots that set up business in and old gas station or a car repair facility as long as they will have an office, a couple of bays where they are able to focus on or prepare cars for sale on the lot and a location where they are able to display their vehicles that are for sale. On the other end of the spectrum you will discover that some new car dealers set-up a Buy Here Pay Here division besides their regular car sales business to accommodate customers that won’t qualify for an auto loan through their normal lenders. In order to see that BHPH car dealers can come in all shapes and sizes.

Inventory for the BHPH Car Dealership

The tiny to mid-size BHPH car dealer is always searching for vehicles to sell on their lot. Each goes to auctions to get cars, buy cars from private party sellers plus they also buy cars from new car dealers that were trade-ins. They are very particular about the cars they buy since they have to pay cash and they need dozens of cars to stock their lot and attract customers with an excellent selection.

The brand new car dealers that have a Buy Here Pay Here Department usually sell their quality trade-ins in their BHPH Division. It makes good sense to market their trades with in-house financing because they have a steady source of used vehicles at their disposal plus they can avoid buying cars from the auction that is a very time intensive activity to find quality cars.

Irrespective of where they get their vehicles they are careful to be sure they only offer sound and dependable automobiles since they will undoubtedly be financing their customer’s purchases. If they were to market junkers and beaters with their customer they stand the opportunity of the buyers not making their payments. Then if the clients don’t pay they have to repossess the cars and then they’re stuck with vehicles that are unsellable because they are junk. So that you can see why they are very particular about the cars they sell and finance at their Buy-Here Pay-Here car dealership.

The Process at the Buy Here Pay Here Car Dealer

The first step of the car buying process at the buy here pay here auto dealer is to see if the customer can qualify for internal financing. Some dealers pull the consumers credit report and some don’t, one of the main concerns is the income and the stability of this income of the buyer along with their current address. The BHPH car lot owner wants a person that has an income that may service the car finance weekly or biweekly and how long they have been on the job. These aspects are often more important than prior repossessions or bankruptcies.

Once they qualify for internal financing they discuss terms of the car finance including the down payment, amount of payments, the interest rate and when and where in fact the car payments should be made combined with the form of payment which could be cash or checking account debit. The price is important, but the customer is normally more worried about the payment.

Vehicle Selection at Buy Here Pay Here Lots

Then it really is time for the client to select a car from the dealer’s lot. They’re given a listing of the vehicles they are qualified to get and finance and they choose their vehicle of preference. Yes, that is not the same as your traditional car dealer, but things are done differently at the buy here pay here auto dealer. Some people say that the car is overpriced, nevertheless, you need to understand that the BHPH dealer is about to finance a customer with very bad credit and a small down payment.

buy here pay here The Buy Here Pay Here dealer is playing the chances and hoping the buyer will make the payments as agreed, but a particular percent of all sales will have to be repossessed after the buyer has run the automobile into the ground. The car buyer with bad credit knows that they can be paying a higher price for the automobile and mortgage loan that is high to pay the dealer for the risky and the expenses they will have to absorb if they repossess vehicles.

Buy Here Pay Here Car Dealer Paperwork and Conditions

Preparing and signing the paperwork is done in the dealer’s office that is a contract between your buyer and the dealer. The documents are legal and conform to regulations that are set by hawaii when the car is being purchased and financed. The terms and conditions are set by the dealer and the buyer must conform to all those conditions or they’re violating a legal agreement. The final thing you should do is be late together with your payment as the car can be repossessed the following day. Grace periods for late payments are rare and the BHPH car dealer is at their rights to seize the vehicle one day after the payment is late. In ways you will find a zero tolerance policy when it comes to enforcing the conditions and terms of the contract between dealer and buyer.

BHPH Auto Dealer Bad Deals, Repos and Mistakes

Even the very best run dealers are certain to make bad deals, mistakes and also have to repossess vehicles. They are careful to accomplish everything they can to avoid problems, but it still happens. Should they have to repossess a car they have to hire a recovery firm that may cost several hundred dollars and then they need to take action with the car. Very often the car has been around a major accident or been run hard and set aside wet which makes the automobile worthless and ready for the scrap yard. It is extremely rare that a repossessed car comes home who is fit. The Buy Here Pay Here Car Dealers takes it on the chin and loses money, but hopefully learns a lesson with regards to qualifying buyers.

Buying a car from the BHPH car dealerships differs than employing the traditional dealer in a number of ways, but it is really a second chance or maybe the last opportunity for the automobile buyer with bad credit. Some of the policies and terms may seem unfair, but even the small dealer can have hundreds of thousands of dollars tied up in inventory and finance agreements. They are putting themselves on the line to help the automobile buyer that needs a car, but has a history of spotty credit. It’s just business.