What is Buy Here, Pay Here? -Buy Here, Pay Here: Bad credit is not a problem

Buying a new or used car usually involves paying in cash, leasing or applying for a loan to finance part or all of the purchase price of the vehicle. But, you can also choose to “buy here pay here” (BHPH) at a dealership that offers this alternative payment. Especially if you have very little credit or do not have credit, a BHPH car dealer may be the right option for you.

The BHPH dealer lends you the money to buy a car, so you do not have to get a loan for the car through a conventional lender. Your BHPH dealer can help you get the car you like, even if your credit is bad. But, there are some things you should know before going shopping at a BHPH dealer.

Being prepared with the information you need when you go to the car dealership can facilitate and expedite the process of buying your car. Here are five important questions you should ask your BHPH dealer before agreeing to buy a vehicle.

Buy Here, Pay Here: Bad credit is not a problem  

We are a leading BHPH car dealership in Hawthorne, CA. You can buy here and pay here, so we can help you get a car when other dealers can not. Smith Auto accepts any type of income, including SSI, disability and government assistance. Even if you have a bad credit record, Motorlender Car cash can help you. We offer a large selection of low mileage used cars and later models, many of them with payments as low as $ 150. We are committed to the satisfaction of our customers, above all. And we are very proud that our clients come back and send us their family and friends.

For more information on how to buy a car with bad credit or no credit, call Smith Auto. For more than 25 years, we have been helping our customers get the cars they need.

1. What items should I bring when I go to the dealership?

Ask what documents to bring before going shopping at the dealership. Make sure you have all the documents with you, to greatly speed up the buying process of the car you want. The list of necessary items may vary, depending on your specific credit situation and dealer policies. In general, you may need the following documents to buy a car at a BHPH dealership:

  • Driver’s license
  • Social Security number
  • Proof of employment and income (salary receipts, with one less than 30 days)
  • Financial information (bank checking account, savings, and credit cards)
  • Proof of residency (rental agreement or mortgage document)
  • Current utility bill (telephone, electricity, gas or water)
  • List of several references (with full contact information)
  • Test car insurance
  • Amount of the advance

Call the dealer before your visit to ask exactly what documents are needed. The dealership representative will help you make sure you have everything you need.

2. What types of payment are accepted?

Instead of the monthly payments, you would make to a traditional lender, you can set up a weekly or biweekly payment schedule (twice a month) at your BHPH dealer. You may need to take your cash payment to your location, or they can allow several other payment methods. Ask if your payments can be made online or by phone. Some merchants allow payment by money order. Or, the BHPH dealer may require payments for automatic withdrawal from your checking or savings account, or with a credit card. Discuss several payment options with the distributor, to find the one that best suits your particular financial situation.

3. Where are they located?

It is important to choose a dealer that is near your home or place of work. When you look at the list of BHPH dealers in your area, look for one that is conveniently located, to make it as easy as possible to make your payment. In addition, BHPH car dealers prefer to work with a customer who lives or works near their dealership. This is because a closer location makes it geographically as easy as possible for the customer to maintain the payment agreement. Therefore, choosing a dealer near you can make it even easier for you to get the car you want.

4. What level of quality can I expect in your vehicles?

Bad credit history should not stop you from buying a quality car. On the contrary, BHPH distributors focus on providing reliable vehicles. They understand that customers are likely to be more motivated to continue making payments for a well-functioning car. Ask your dealer about their inspection standards and the processes they use to recondition the vehicles they offer. Also, confirm that repair and maintenance services are available at the dealer or at a qualified repair center.

5. What is your policy on late payments?

Although everyone plans to make car payments on time, sometimes a payment may be late. It is very important to understand the dealer’s policy on late payments. You should ask several questions regarding late payments:

  • Is there a grace period for late payments? Or will the car be seized the day after the payment expires but not paid?
  • Will someone contacts you before the recovery? Or, will they simply recover the car without any discussion?

A late payment can never become a problem, but you should be clear about what to expect if you ever have an emergency that causes a delay in payment. It is also a good idea to ask if the dealer reports routinely and negatively about your payments to the credit reporting agencies. You should know if your loan is helping you rebuild or start your credit history.

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