How can BuyHerePayHere help?
You might have heard of the term BuyHerePayHere or BHPH. So, what is it and how can it help get you financed for a car?
Buy here pay here, other wise known as in-house financing, simply means that when you buy your car from a dealership, you make your payments to that dealership. This might sound as common sense but not every car dealership does this. Many dealerships look like that but are actually making you pay the bank which has nothing to do with the actual sale of the car. This is because once you sign the paperwork, the bank pays the dealership the car price upfront and expects the customer to pay back the loan to the bank. But BuyHerePayHere dealerships offer a buying experience without the third party bank.
This is very essential, that is eliminating the bank out of the equation, for a very important reason. When the bank finances the sale, it makes its own approval criteria. The bank asks for a certain percentage to be for a down payment, high income, and most importantly, a specific credit score for approval. And without meeting these criteria, the sale might not be approved and you end up losing time and energy only to be declined. But if the banks are not involved, then the Buy Here Pay Here Dealerships make their own criteria for approving a sale. They mainly do not check your credit score. So everyone, no matter how low their credit score is, can be approved.
The price of car affects the range of income accepted and it would vary from dealership to dealership. You have to remember that since no credit score is required, you have to prove that your financial situation allows you to make a set payment plan. So prove your financial situation to the best of your ability. Some dealerships offer incentives such as no money down financing with weekly, bi-weekly, or monthly payments. If you have a trade-in vehicle, buy here pay here lots often offer great deals as they can often fix the trade-in car and sell it themselves.
Documents needed with BuyHerePayHere financing might include proof of income, decent time on the job, and driver’s license. To start, all you have to do is apply online. It is a quick and easy application. Your application is matched, based on the financial situation that you provide, to the best and closest BuyHerePayHere dealership. The dealership then contacts you with the pre-approval so you are prepared before you step into the lot.
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