Buy Here - Pay Here


When your credit standing is in question because of a low FICO score it can make you feel like a lesser person, but you should know that you are not alone. There are millions of people that have a bad credit, but it doesn’t have to stop you from buying and financing an automobile. There is a segment of the auto industry that specializes in helping people get cars no matter what their credit status. They are usually called Buy Here Pay Here car dealers, but they are also known as “Note Lots”, “BHPH Dealers”, “Tote the Note Dealers” and “In House Financing Car Dealers. This article will provide you with some Buy Here Pay Here car buying tips that will help you navigate the world of bad credit auto financing.

These dealerships or car lots are not your typical car dealerships in that they not only sell the vehicle, but they also finance their customers. Their inventory consists of used vehicles and the dealer is the lender so your auto payments are made to the dealership rather than a financial institution the way a traditional auto loan works. The interest rate is usually high to compensate the owner of the dealership for the higher risk that is involved in financing automobiles for people with credit issues. On the brighter side this once unconventional method for auto financing has been growing leaps and bounds because there is a high demand. There are several reasons such as economy and those that have been the victim of those unfortunate things that happen such as illness, injury and ugly divorces.

Car Buying Tips for Working with Buy Here Pay Here Dealers

Tip 1. Visit a BHPH dealer that is close to where you live. Typically you will be required to make your payment directly to the dealership where you bought the car so you want it to be convenient to drop off your payment in a timely fashion rather have to drive across the state every other week.

Tip 2. Make sure that the car lot has a vehicle that will fill your transportation needs before you start the process. Since most BHPH dealers offer used vehicles it is important that they can offer a vehicle that fits you requirements.

Tip 3. It is critical that you understand what you are getting into when you buy and finance a vehicle at a dealer that finances. Be sure you understand your obligation and what happens if you violate your installment agreement, such as payment due dates and vehicle maintenance.

Tip 4. Does the car you are buying and financing include a warranty? Many buy here pay here car lots and dealers include a warranty that covers your purchase because the last thing you want to do is have to spend big money on repairs while you are making payments. Typically you are required to pay for normal maintenance and wear, but you want to have a warranty for major repairs.

Tip 5. What is the term of your auto loan? How many years will you be paying for this car and at what cost. You know that the interest rate will be high because you have bad credit, but you should be aware of the rate you are being charged.

Tip 6. Can you pay off your loan early? Some dealers have a prepayment penalty for paying off their car loan early so make sure you understand what the charge will be and if there is such a charge.

Tip 7. Before you even make the trip down to the dealer or lot you should make sure you have proof of income, a driver’s license and a list of several personal references. Buy here pay here car dealerships determine your eligibility based on your documented income. The drivers license requirement is the law and the references are used should you are unable to be located if you stop making your payments.

Purchasing and financing an automobile with bad credit is not very difficult to do today thanks to Buy Here Pay Here dealerships in Indiana, but you need to know what you are doing before you sign your name and hand over your down payment. You are the one that has to make the payments and fulfill your part of the contract so go over these Buy Here Pay Here car buying tips and you will know exactly what you are getting into before it’s too late.