When a Buy Here Pay Here Dealership is the RIGHT Choice For You

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Written By RandyYoumans

To empower, educate, and entertain our readers with high-quality content that deepens their understanding of the automotive world and fuels their passion for cars.





Have you ever found yourself in need of a vehicle but facing challenges with your credit score? If so, you’ve likely stumbled upon the term ‘buy here pay here dealers.’ These dealerships offer a unique opportunity for individuals with less-than-stellar credit to secure a car loan directly from the dealer. But is it the right choice for you? Buckle up as we dive into the world of buy here pay here dealers, exploring their benefits, potential drawbacks, and when they might be the perfect fit for your situation.

What Are Buy Here Pay Here Dealers?

Buy here pay here (BHPH) dealers provide in-house financing, meaning they offer loans directly to customers rather than relying on third-party lenders. This setup allows the dealership to sell vehicles and manage the financing process under one roof.

Key Features of BHPH Dealers

  • No Credit Check: Traditional lenders often require a credit check, which can be a hurdle for those with poor credit. BHPH dealers typically do not perform a credit check, making them accessible to a wider range of customers.
  • In-House Financing: The dealership handles the financing, so you make your car payments directly to them. This can simplify the process and make it easier to get approved.
  • Flexible Payment Terms: Payments can often be made weekly or bi-weekly, aligning with the customer’s pay schedule.

Benefits of Buy Here Pay Here Dealers

Accessibility for Bad Credit

One of the most significant advantages of BHPH dealerships is their willingness to work with individuals who have bad or no credit. Traditional auto loans can be out of reach for those with a checkered credit history, but BHPH dealers offer a viable alternative. If you need a car to get to work or manage daily life, BHPH dealers can provide the means to do so without the stringent credit requirements of conventional lenders.

Simplified Approval Process

The approval process at a BHPH dealership is often quicker and more straightforward than at a traditional dealership. Since the dealer is handling both the sale and the financing, they have more flexibility in approving loans. This streamlined process can be a lifesaver if you need a vehicle urgently.

Building or Rebuilding Credit

Making consistent, on-time payments to a BHPH dealer can help you build or rebuild your credit. Some dealerships report payment histories to credit bureaus, allowing you to demonstrate responsible borrowing behavior and improve your credit score over time.

Potential Drawbacks of Buy Here Pay Here Dealers

Higher Interest Rates

One of the trade-offs for easier access to financing is higher interest rates. BHPH dealers often charge higher interest rates to offset the risk of lending to individuals with poor credit. It’s essential to carefully review the terms of the loan and ensure you can afford the payments before committing.

Limited Vehicle Selection

BHPH dealers typically have a smaller selection of vehicles compared to traditional dealerships. The inventory often consists of older, high-mileage cars. While these vehicles can still be reliable, they may not have the features or warranties that come with newer models.

Stricter Payment Schedules

Many BHPH dealers require weekly or bi-weekly payments, which can be more frequent than traditional monthly payments. This payment schedule aligns with the pay periods of many customers but can be challenging to manage if you’re not used to budgeting for more frequent payments.

When a Buy Here Pay Here Dealership is the RIGHT Choice

You Have Poor Credit or No Credit

If your credit score is preventing you from getting approved for a traditional auto loan, a BHPH dealership can be a lifeline. The absence of a credit check makes it possible to secure a vehicle when other avenues are closed.

You Need a Vehicle Quickly

The streamlined approval process at BHPH dealers can get you behind the wheel faster. If you’re in a situation where you need a car immediately, whether for work or personal reasons, BHPH dealerships can expedite the process.

You Can Handle Higher Interest Rates

Before opting for a BHPH dealership, it’s crucial to understand the financial implications. If you’re confident you can manage the higher interest rates and more frequent payment schedule, this option can be a practical solution.

How to Choose the Right Buy Here Pay Here Dealer

Research and Reviews

Not all BHPH dealerships are created equal. Researching and reading reviews can help you identify reputable dealers with fair practices. Look for dealerships with a solid track record of customer satisfaction and transparent terms.

Inspect the Vehicle

Given that BHPH dealers often sell older vehicles, it’s vital to thoroughly inspect the car before purchasing. Consider getting a mechanic’s inspection to ensure the vehicle is in good condition and won’t require immediate costly repairs.

Understand the Terms

Carefully read and understand the loan terms before signing anything. Pay attention to the interest rate, payment schedule, and any fees or penalties. Ensure that the terms are within your budget and that you can commit to the payment schedule.


What is the difference between buy here pay here and traditional financing?

Buy here pay here financing is offered directly by the dealership, bypassing traditional lenders. This means the dealership sells you the car and also provides the loan, whereas traditional financing involves getting a loan from a bank or credit union.

Do buy here pay here dealers report to credit bureaus?

Some BHPH dealers report payment histories to credit bureaus, which can help you build or rebuild your credit. However, not all do, so it’s essential to ask the dealer about their reporting practices.

Can I trade in my old car at a buy here pay here dealership?

Yes, many BHPH dealerships accept trade-ins. The trade-in value can be used as a down payment on your new vehicle, reducing the amount you need to finance.

Are buy here pay here cars reliable?

BHPH dealerships typically sell older, high-mileage vehicles. While these cars can still be reliable, it’s crucial to inspect them thoroughly and understand that they may not come with warranties or the same level of reliability as newer models.

Can I refinance my loan from a buy here pay here dealer?

Refinancing options may be limited, but it’s possible to refinance your loan if your credit improves. Consult with traditional lenders to see if they offer refinancing options for BHPH loans.


Buy here pay here dealers provide a valuable service for individuals with poor or no credit, offering an accessible path to vehicle ownership. While there are potential drawbacks, such as higher interest rates and limited vehicle selection, the benefits of easy approval and credit-building opportunities can make BHPH dealerships a worthwhile option. By thoroughly researching and understanding the terms, you can make an informed decision about whether a buy here pay here dealership is the right choice for you.