Many people who shop at Buy Here, Pay Here car dealerships are looking for a deal that they can't get anywhere else. Buy Here, Pay Here (BHPH) customers often have bad credit history or no credit history at all, and find it difficult or impossible to get standard auto financing.

The Buy Here, Pay Here business model works like this: car dealerships offer their financing options to high-risk borrowers. BHPH customers borrow money from the dealership where they buy their car, and make their monthly payments back to the dealership. BHPH interest rates are higher than conventional interest rates, but for many car buyers, the BHPH industry presents an opportunity to get financing they couldn't get anywhere else.

Purchasing From A Buy Here, Pay Here Dealership Can Build Good Credit

Buy Here, Pay Here car dealerships report to credit bureaus, which means that every payment made on time and in full counts toward the car buyer's credit score. For people with poor credit history, BHPH financing options provide a valuable opportunity to improve their credit scores. For customers who have no credit history at all, BHPH cars offer the perfect chance to develop their credit history from the ground up. 

Many Dealerships Will Work With Customers If The Car Breaks Down

BHPH customers are people who may be struggling financially, so when their cars break down, paying for necessary repairs can be difficult. Many BHPH car dealerships offer a warranty program to protect the cars they sell, and some offer service contracts to help with necessary repairs.

In addition, many BHPH car dealerships will work with customers having car trouble to help them fix their vehicles. After all, it's in the best interests of the dealership if their customers continue to use their cars, because this maintains the incentive to make car payments.

Some Dealerships Offer Lower Interest Rates For Automatic Bill Pay

To entice customers to sign up for an automatic bill payment option, some BHPH dealerships will offer lower interest rates and other incentives. Other BHPH auto dealerships offer other forms of incentives and ways to save money, like referrals programs and rewards for making payments on time.

It's no doubt that life without a car can be financially debilitating. Buy Here, Pay Here Car dealerships can help people seeking to build back their credit. For more information, contact a company offering BHPH options, such as Autobank of Kansas City.