Buy here pay here within 100 miles

What Is Buy Here, Pay Here (BHPH)?

The term “Buy Here, Pay Here (BHPH)” refers to auto dealerships in which the financing for the vehicles purchased is done in-house. These types of dealerships are typically involved in the sale of heavily-used cars, and they tend to cater to customers with relatively poor credit ratings.

Key Takeaways

• Buy here, pay here refers to a type of car dealership that provides financing for its customers in-house.
• Most car dealerships rely on third-party financing firms.
• While the buy here, pay here business model can generate additional interest revenues, it can also produce cash flow problems because of the delayed receipt of cash and the increased risk of default.

How Buy Here, Pay Here Works

The majority of auto dealerships focus their attention on generating new sales; they delegate the financing portion of their business to a third-party provider. In the case of dealerships affiliated with a major automotive brand, this financing might be extended by an affiliate of the manufacturer itself. In other cases, the dealership might use dedicated lease financing companies that are not affiliated with the auto manufacturers.

BHPH dealerships are an exception to this general rule because they provide their own lease financing themselves. The benefit of this approach is that the BHPH dealership can enjoy the interest revenue associated with their leases. On the other hand, these dealerships may be prone to cash flow problems. After all, the price received for the cars that they sell is stretched out over the life of the car loan.

The BHPH business can be especially difficult if it is geared toward subprime borrowers. BHPH dealerships have been known to offer flexible terms, such as 0% down payments, no-interest financing periods, and loans without any preliminary credit check. Although these measures might more readily generate new business, they can also increase the default risk of the business. As a result, these flexible loan terms can significantly threaten the dealership’s long-term profits.

Example of Buy Here, Pay Here (BHPH)

David is the owner of a used car dealership. He is seeking to expand his current customer base. He has found it difficult to compete with the brand-affiliated dealerships in his local marketplace, who tend to attract his region’s more affluent customers. In an effort to expand his revenues, David decides to focus his marketing strategy on subprime customers who may be unable to afford the financing terms offered by his larger and more traditional competitors.

To that end, David begins offering flexible financing terms on an in-house basis, effectively becoming a BHPH dealership. He takes out an advertisement in several local newspapers, offering “no money down” used cars to customers with bad credit. He does not require a preliminary credit check. To seal the deal, he offers a six-month interest-free period.

David reasons that, although he will likely experience higher default rates than his competitors, he can make up for this risk by charging relatively high interest rates. He also intends to aggressively repossess cars from customers who fail to make timely payments. To support that strategy, he even considers installing trackers and other devices onto the cars to identify them and to render them inoperable if the customers fail to pay.

Ride Now Motors

No Credit. No Problem.

Whether you’re looking for a quick sale or don’t want to deal with the hassle of traditional financing, stop by Ride Now Motors in Charlotte, NC, where you can take advantage of our Buy Here Pay Here financing. 

When an auto dealership offers a Buy Here Pay Here (BHPH) program, that means they offer on-site financing. That allows you greater flexibility in how you finance your next vehicle. These dealerships often have to follow stricter laws that provide you greater protection in your purchase. While some BHPH lots have a poor reputation, these kinds of dealerships can often give you a greater sense of confidence when making your purchase.

If you’re in the Charlotte, North Carolina area, take a short trip over to Ride Now Motors. We’ve developed a reputation for always putting our customers first. Whether you’re browsing our massive selection or looking for a great finance deal, we’re here for you.

Your Past Doesn’t Define Your Future

Getting denied for any kind of loan isn’t easy. That kind of rejection can stay with you for years, even if you turn things around. Everyone makes mistakes with their money, but that doesn’t mean you should carry the weight of those decisions your entire life.

At Ride Now Motors, we understand that life can get tough. We never judge our customers by their credit scores. With our approach to financing, you’ll be given opportunities to buy that you won’t find anywhere else. While a genuine “no credit check” dealership is hard to find, Ride Now Motors is the closest thing you’ll find in Charlotte, NC.

Low Down Payments

Just because you don’t have a lot of cash on hand doesn’t mean you don’t deserve to improve your transportation situation. At Ride Now Motors, you can purchase the perfect vehicle for your needs with a down payment as low as $500.

That’s right; we have a fantastic selection of affordable cars, trucks, and SUVs that you can drive home today with a low down payment. Start your search online, or browse our selection today.

Rebuild Better

If you suffer from low or no credit, buying a vehicle from a Buy Here Pay Here lot could be a step in the right direction. With our easy payment system, you can make your monthly payments right on our website. Every time you make an on-time payment, you’re building better credit. By the time your loan is paid off, you could find yourself with a higher credit score than you could have ever imagined.

Get approved for a loan today by filling out an application right on our website. It only takes two minutes but will start you down a path that will forever improve your future.

Why Buy From Ride Now Motors?

Ride Now Motors offers competitive Auto Loans. As Little as $500 Down gets you approved. We have been helping customers buy quality Pre-owned vehicles for over 20 years in the Charlotte metro area. Regardless of Bad Credit, No Credit, Good Credit, First Time Buyers, Slow Pay, Bankruptcy, Divorce, and other credit situations.

Get a GUARANTEED Approval today and apply now!! We are happy to answer any questions you have, please don't hesitate to contact us!

Documents for Approval:

• Valid Drivers License
• Your Most Recent Pay Stub
• A Recent Utility Bill
• Your Cash Down Payment

Let Ride Now Motors help you get the approval you need. With our Buy Here, Pay Here program, you will drive home in the vehicle of your dreams! Please fill out our online credit application or contact our team to get started on the road with your new-to-you car today!

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