{"id":388,"date":"2017-01-26T12:00:53","date_gmt":"2017-01-26T12:00:53","guid":{"rendered":"http:\/\/www.dealerfireblog.com\/buyherepayhereusa\/?p=388"},"modified":"2023-10-17T12:18:29","modified_gmt":"2023-10-17T12:18:29","slug":"pros-cons-buy-here-pay-here","status":"publish","type":"post","link":"https:\/\/www.autosimple.com\/blog\/pros-cons-buy-here-pay-here\/","title":{"rendered":"Pros and Cons of “Buy Here Pay Here” Dealerships"},"content":{"rendered":"

If you are in the market for a certified pre-owned vehicle<\/a>, check out our Used Car Buyer\u2019s Guide<\/a>\u00a0first. After setting your budget and deciding whether to buy from a private seller or a dealership, the next step is deciding what kind of dealership to buy from.<\/p>\n

What Are “Buy Here Pay Here” Car Lots?<\/strong><\/h3>\n

Buy Here Pay Here (BHPH) car lots distinguish themselves from other used car lots because BHPH dealerships offer on-site financing.<\/p>\n

If you have bad credit, no credit, or in bankruptcy, you may find BHPH dealerships to be your best option. Even if you have good credit or don\u2019t need financing, BHPH dealerships offer\u00a0great deals on certified pre-owned vehicles.<\/p>\n

While \u201cbuy here pay here\u201d financing may be your only way to obtain a vehicle of your own, make sure you do your due diligence and make an educated decision beforehand (See: How to Buy a Used Car on Bad Credit<\/a>).<\/p>\n

Buy Here Pay Here lots have to abide by stricter laws since they are also effectively a finance company. Any BHPH lot that does not follow state and federal rules and regulations<\/a> will not be in business for very long.<\/p>\n

For example, all BHPH dealerships will have to follow the Truth in Lending Act<\/a> (TILA), which requires the dealer\/financier to disclose the final cash price, the amount financed, in addition to other necessary information for the consumer to shop and compare.<\/p>\n

Other laws and regulations include the Fair & Accurate Credit Transaction Act, State Usury laws, and the Fair Debt Collections Practices Act.<\/p>\n

Buy Here Pay Here Pros<\/strong><\/h2>\n

In-House Financing<\/strong><\/h3>\n

The first obvious advantage of BHPH dealerships is the ability to purchase and set up loan payments at the same place. Instead of getting an auto loan from a bank or another third party, you\u2019ll be able to get everything done at the dealership.<\/p>\n

Your payment plan will either be weekly, semi-monthly, or monthly. Get an idea of what your monthly payment will be using our Auto Loan Calculator<\/a>.<\/p>\n

Often, your BHPH dealer will be able to match up your pay dates with your job to make it as easy as possible to make payments on time and build up your credit score.<\/p>\n

If you have no credit, bad credit, or are in post-bankruptcy, getting loan approval can be difficult. While annual percentage rates may depend on your credit score, Auto Simple accepts all credit situations including bad credit and no credit.\u00a0This can be a great way to build up your credit at the same time.<\/p>\n

Don’t believe people\u00a0who say you’ll be paying 30% interest or the maximum allowed by law. Many BHPH lots offer interest rates in the range of 15% to 20%. Auto Simple offers interest rates as low as 14.9% to qualified buyers.*<\/p>\n

Get pre-approved for financing by completing our\u00a0secure online credit application<\/a>.<\/em><\/p>\n

Transaction specifics will be unique to you so make sure you review all the paperwork and finance information before you sign anything.<\/p>\n

48-Hour Return Policy<\/strong><\/h3>\n

When you buy from a private seller, you give up the chance to return the vehicle if you aren\u2019t satisfied (along with a host of other buyer securities). When you buy a car from a BHPH\u00a0car lot on the other hand, you are given a short return period to drive and test your purchase.<\/p>\n

At Auto Simple, and at many other BHPH lots, a full 48-hour return period comes with every vehicle purchase. Make sure you go over this information with your dealer before signing any papers. No-Return policies raise red flags.<\/p>\n

48 hours should give you enough time to drive your new vehicle through a variety of road conditions and even compare it with other cars and deals. There is absolutely no obligation to accept the offer if you are within the 48-hour timeframe.<\/p>\n

Trade-In Deals (Buy Here Sell<\/em> Here)<\/strong><\/h3>\n

Trading in a used car is an easy way to kill two birds with one stone. If you are looking to trade in an older vehicle for a newer one, Auto Simple offers top dollar for pre-owned cars, trucks, vans, and SUVs. Our appraisals are good for 7 days.*<\/p>\n

By selling (or trading in) your old car at a BHPH dealership, you can save a lot of time and money. We don\u2019t know about other BHPH lots, but at Auto Simple<\/a>, we make it extremely easy (See: How to Sell a Used Car to a Dealership<\/a>).<\/p>\n

Just fill out this form<\/a>\u00a0and we\u2019ll send you an estimated appraisal within 48 hours.*<\/em><\/p>\n

Curious to know how much money you can save by trading in your gas guzzler for a more fuel efficient vehicle? Calculate your fuel savings with our Gas Savings Calculator<\/a>.<\/p>\n

Free CarFax Report<\/strong><\/h3>\n

Another advantage of going with a BHPH dealership is access to free CarFax reports on all vehicles.<\/p>\n

Certified Pre-Owned Vehicles and Thorough Inspections<\/strong><\/h3>\n

A\u00a0certified pre-owned<\/a>\u00a0car is one that has undergone a full inspection and any necessary repairs as specified by the automaker. CPO vehicles are often in “like-new” condition. They may cost more, but often\u00a0come with additional warranties and roadside assistance (like our 6 Month\/6000 Mile Powertrain Warranty), one of the main reasons why it’s a smart idea to buy from a BHPH dealership.<\/p>\n

While we can’t speak for other dealerships, the in-house mechanics at Auto Simple put every single vehicle through a 180-point quality inspection. This is the largest inspection any of our mechanics have ever been exposed to. We make sure to fix everything from gaskets to transmissions and everything in between.<\/p>\n

We are able to inspect, fix, and test all of the cars on our lot because we have all of our services on-site. We control the quality levels and meticulously recondition the vehicles to ensure we meet, and hopefully exceed, all of your expectations.<\/p>\n

Warranties<\/strong><\/h3>\n

Most used car dealerships offer warranties on used cars, such as\u00a0Auto Simple<\/a>‘s 6 Month\/6,000 Mile Powertrain Warranty on All\u00a0Certified Pre-Owned Vehicles. This comes in addition to any original manufacturer warranties.<\/p>\n

Call and ask about warranty information beforehand and make sure you get everything in writing.<\/p>\n

Quick and Easy Process<\/strong><\/h3>\n

All BHPH vehicles are normally in a database that is connected to the DMV for fast and smooth transactions. BHPH dealers may also be able to work with you to clear any existing loans you may have taken out (this depends on location, lender, and other factors).<\/p>\n

Auto Simple<\/a> makes the car buying process easy. You can get started without even leaving your couch:<\/p>\n

    \n
  1. Get Pre-Approved Online<\/a><\/li>\n
  2. Search Online Inventory<\/a><\/li>\n
  3. We Help You Find the Right\u00a0Vehicle<\/li>\n
  4. Drive It Using Our Private Track for Test Driving<\/li>\n
  5. Buy with Confidence (See: Customer Confidence Program<\/a>)<\/li>\n<\/ol>\n

    Although you may have to sign on a dotted line or two, all the paperwork is typically handled by the dealership. Most of our customers are able to drive away in their dream car the very same day.<\/p>\n

    Buy Here Pay Here Cons<\/strong><\/h2>\n

    Limited Inventory<\/strong><\/h3>\n

    Although BHPH lots carry a lot different makes and models, you are restricted to what they have available in their inventory. Shop online inventories<\/a> and call the location before making the trip.<\/p>\n

    Higher Interest Rates<\/strong><\/h3>\n

    If you have good or excellent credit, a different lender will probably provide a lower interest rate than a BHPH financier.<\/p>\n

    But despite the unreasonably high interest rates you may have heard about BHPH lots, Auto Simple offers interest rates as low as 14.9% to qualified buyers.* Get pre-approved online and contact our financing department for more information.<\/p>\n

    Wherever you get your loan, make sure you take the information home and carefully look it over before you sign anything. Remember, this contract will potentially stay in effect for years. This isn\u2019t an iTunes update\u2014you want to make sure you know the exact terms and agreements.<\/p>\n

    We also recommend looking up the dealership\u00a0online with the Better Business Bureau and any local consumer affairs offices. Check how long they have been in business and online testimonials. Basically, just do your research<\/a> and you\u2019ll have no problem finding\u00a0a great car at an affordable price.<\/p>\n

    Hidden Fees<\/h3>\n

    Not all dealerships are as upfront with you about the total costs involved in your transaction. Don’t assume they will tell you. Look over all of the paperwork carefully and check for:<\/p>\n