Quick facts about buy here, pay here car loans:
Buy here, pay here is a financing solution of last resort.
A BHPH dealer underwrites the loan in addition to selling the car.
Loan approval at a BHPH lot is easier than with a conventional dealership.
Interest rates for BHPH loans often reach 20% or higher.
The shaky economy is leading to higher interest rates and tighter credit. That is, at least for now. In other words, getting a car loan right now may be tough for many consumers. As banks and credit unions grow more selective in approving new borrowers, you may find yourself looking for alternative financing solutions. One such solution is buy here, pay here car dealers. They’re sometimes called “Tote Your Note” or “Bad Credit No Credit” car dealers.
BHPH dealers shouldn’t be your first choice for buying and financing a car. However, they perform a service for borrowers who can’t secure a traditional loan. You won’t be d …