Monday, July 23, 2012

A Look At Buy Here Pay Here Financing- What Is It Exactly?

If you are looking to purchase a motor vehicle then you should acquaint yourself with the Buy Here Pay Here (BHPH) concept. You want to be able to trust in the dealership that you work with because you want a car that is dependable for your transportation needs. You also want to find a financing plan that is affordable for you and works with your budget and not against it. A new used automobile may be in your future if you are able to find a company that can tailor a financing plan to suit you.

Buy here pay here may sound like a strange term but it is actually relatively easy to understand. It is a form of financing for automobiles whereby the loan is set up and arranged through the dealership, as well as all future payments. It is a type of one stop shopping that is simple and convenient for both the buyer as well as the dealer. The person who wishes to purchase a car does not have to go to their bank or credit union for a loan but can do everything they need to at the dealership.

When you decide to take advantage of the buy here pay here model you buy a motor vehicle through what is known as in-house financing. By so doing you make an arrangement to make weekly or bi-weekly payments through the dealer as opposed to making your payments on a monthly basis to a traditional lender. Some dealerships that work with the BHPH option allow their customers to pay via telephone or the internet while others deem it a requirement for the individual to come into their business and pay with cash or a check. In this way you buy at the dealership and also pay at it.

There is not a great deal of difference between the buy here pay here car business and a traditional company that sells automobiles. There are many traditional dealerships that sell new and used cars that are now offering this type of financing to their customers. You may not see the exact words in a sign in the window of the establishment but if you see signs that read "Financing Available" or "We Finance" then that is the same idea. If you do not see any signs whatsoever that mention financing then do not hesitate to ask.

The main difference between a traditional company that specializes in the selling of cars and one that offers BHPH is the shopping experience that awaits the customer. When you visit a traditional establishment a discussion of finances often comes at the end of the discussion with the sales person. First, the prospective buyer will look around; ask questions and maybe test drive a vehicle or two. Talk of money comes later. At a buy here pay here business the process will be reversed. The conversation starts with money and credit and then comes the opportunity to look at the selection of cars available.

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