‘Buy Here, Pay Here’ car dealerships (BHPH) are car dealerships, car lots, or private car sellers that not only seller of the used car, truck or van, but are also the financer. The (BHPH) seller sells you the vehicle and also offers the terms of the financing the vehicle – the schedule of payments you are to make, how long you will make those payments, and how much interest will be charged on the principal amount borrowed.
Who Should Buy Used Cars from ‘Buy Here Pay Here’ Car Lots?
Anyone who is looking for financing the purchase of a new or used vehicle can buy from a ‘Buy Here, Pay Here’ car lot (BHPH); however, those who have bad credit/no credit or have been turned down by a dealership for auto financing can benefit the most from (BHPH). ‘Buy Here, Pay Here’ car dealerships (BHPH) can be the last resort for someone who needs a car, but has not been able to acquire financing at other dealerships or through private loans.
‘Buy Here Pay Here’ Facts and Myths
Do ‘Buy Here Pay Here’ Car Lots Have Higher Interest Rates
Just because a used car dealership is advertised as ‘Buy Here, Pay Here’ car lot (BHPH), does not mean that the dealership is guaranteed to charge a higher interest rate than other auto dealerships. The interest rate charged has more to do with the risk assessed based on your credit score. Therefore, a low risk ‘Buy Here, Pay Here’ customer can see rates comparable to traditional lenders, based off credit scores.
Sub-Prime and Deep Sub-Prime Auto Financing
Subprime and deep subprime credit scores (540-619: Sub-Prime, Below 549: Deep Sub-Prime) can will be quoted higher interest rates of about 17 or 20%, but generally these lower scores will be turned down for a loan altogether. The beauty of (BHPH), is that the lender is more likely to approve you, because they are also the seller of the vehicle.
Do ‘Buy Here Pay Here’ Car Lots Require Higher Down Payments?
There is a myth that assumes that BHPH lots requires higher down payments than traditional dealers or lenders. This is just a myth, born from less than honest practices from decades ago. For trusted lenders and BHPH car dealerships, you don’t have to worry about unreasonably large down payments.
In fact, with buy here pay here used car dealerships in mesa you can expect lower down payments thanks to the highly competitive nature of the Mesa used car market. Downtown Mesa is a hot-bed for used car sales in Arizona, and you can expect the various car lots in Downtown Mesa to compete with each other – offering competing terms and lower down payments.
Are ‘Buy Here Pay Here’ Car Lots Regulated?
Yes, car lots that advertise “Buy Here, Pay Here” are regulated by the same state and federal laws, rules and regulations as any other dealership, lender, or auto finance company. BHPH car dealerships must comply with Unfair & Deceptive Practice Laws, State Usury Laws, Lemon Laws, Fair Debt Collections Practices Act, and all other laws.
‘Buy Here Pay Here’ Car Lots in Arizona?
BHPH car dealerships can be a great option for you if you have no credit or bad credit, or have already been turned down for a loan on a new or used vehicle in Arizona. You need to remember that because there is extra risk involved with the loan, BHPH lots work with you in your situation. In some cases, a job and a place of residence may be enough to qualify you for financing.
If you are searching for ‘Buy Here Pay Here’ Car Lots in Arizona, let USA Auto help you with your search. We will give you an honest and up-front answer whether or not we will be able to work with your situation, and can offer financing on our inventory of used cars, trucks, vans, and SUvs in our Downtown Mesa lot.
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