What is a Buy Here Pay Here type of Used Car Dealer ?

Buy Here Pay Here (BHPH) refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles. Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates.

Do buy here pay here lots show on your credit report?
Do buy here pay here go on your credit?
Do they check your credit for buy here pay here?
Do banks have to report to credit bureaus?
Can I get a car loan with no credit and no cosigner?
What do you mean by in house financing?
How does a buy here pay here car lot work?
How long does a voluntary surrender Stay on credit?
How do you do a voluntary repossession?
How much does a repossession drop your credit score?
Do you still owe after a repossession?
Can you get your car back after it’s been repossessed?
Do you still have to pay if your car is repossessed?

More About Buy Here Pay Here and how Used Car Financing can help you!

Do buy here pay here lots show on your credit report?

Buy here pay here lots generally do not report to credit bureaus. They also do not generally check your credit. Your down payment and employment is usually your approval process. Ymmv as in there are a few that do check credit and will report.

Do buy here pay here go on your credit?

Yes. One of the best ways to improve your bad credit is with an auto loan. If you make timely payments on your Buy Here Pay Here car loan, dealers will report that good credit activity to your credit reporting agencies. Big payments like car loan payments can improve your credit score quickly.

Do they check your credit for buy here pay here?

The biggest advantage these places offer: they will not run a credit check. This is because they do not use third-party lenders and do their financing in house. BHPH dealers do not care about your credit score and just need you to prove you have a regular income. You arrange the loan at the dealership.

Do banks have to report to credit bureaus?

Unfortunately, lenders don’t have to report to all three credit reporting agencies — or any at all, for that matter. … In general, most major banks report to all three credit bureaus. But smaller regional banks and credit unions may only report to one or two credit bureaus.

IMPORTANT NOTE:

At Auto Maxx Dover, we always urge our customers to use one of our many financing options where a small regional bank, credit union or other lending source that will report your good payment actions to the three credit bureaus. In our many decades of Used Car Financing, where most people make a costly mistake here is to buy more car than they can be confident and certain of their practical ability to meet their monthly obligations. In other words, do not let the car dealership down the road from us talk you into the most expensive used vehicle on the lot. When a monetary challenge appears, as they always do in every walk of life, an exorbitant monthly car loan bill can jeopordize your credit. That’s why we run against the grain with our competition… we promote financial practicality over flashy show off vehicles. If you are looking for PRACTICAL long term financial security, call us about using your Used Car Loan to do that for you.

Can I get a car loan with no credit and no cosigner?

If you have no credit and need to finance a car purchase, having a cosigner can help you get approved for the loan. … A potential cosigner can only qualify for an auto loan approval if they have good credit and the income to pay the loan in the event that the primary borrower is unable to meet its obligations.

What do you mean by in house financing?

In-house financing is a type of seller financing in which a firm extends customers a loan, allowing them to purchase its goods or services. In-house financing eliminates the firm’s reliance on the financial sector for providing the customer with funds to complete a transaction.

How does a buy here pay here car lot work?

Buy Here Pay Here. Buy Here Pay Here (BHPH) refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles. Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates.

How long does a voluntary surrender Stay on credit?

How long does a voluntary surrender of a vehicle stay on your credit report?
If you stop making payments for your automobile loan and it is repossessed, a repossession will appear on your credit report for up to seven years and will significantly lower your credit score.

How do you do a voluntary repossession?

With a voluntary repossession, you eliminate the chaos and cost of dealing with the repo man. You simply inform your lender that you will not make payments going forward, and that you want to surrender your car. You set a time and place, you bring the vehicle (as well as a ride home), and you turn over the keys.

How much does a repossession drop your credit score?

In all, a repo could cause a 100-point drop in your credit score, Sanford says. And late payments, collections and public records generally all stay on your credit for about seven years, according to myFICO.com.

Do you still owe after a repossession?

If your car or other property is repossessed, you may still owe the lender money on the contract. The amount you owe is called the deficiency or deficiency balance. (You can learn all about repossessions in our Repossession of Cars & Property area.)

Can you get your car back after it’s been repossessed?

Often, a bank or repossession company will let you get your car back if you pay back the loan in full, along with all the repossession costs, before it’s sold at auction. You can sometimes reinstate the loan and work out a new payment plan, too.

Do you still have to pay if your car is repossessed?

Once a car is repossessed, it is usually sold through an auction. It is common for cars to sell at auctions for a fraction of their resale value. If your car sells for less than your loan balance, you will owe the lender the difference, called the “deficiency balance”.

IMPORTANT NOTE:

As you can see buying a used car from any used car dealer has it’s risks, the same risks associated with many financial decisions.  Fortunately, the good financial discipline that works on those other types of decisions work when shopping for a used vehicle also.  How then can you make a good practical choice, giving you the proper financial distance from these risks?

We tell every potential customer we see

do NOT BUY more car than you can afford.  It’s the number one used car buyer mistake we have seen in over 40 years in the used vehicle business.  In order to make a used car work for you and build your credit record, you must make what is a difficult decision for anyone shopping for a car (and that included us, when we look for used vehicle inventory)… the ability to say “No”.  That is probably something you have never heard a used car professional tell you, unfortunately.  In order to make a practical choice on a used car that will help, and not hurt, your credit score, say “No” to luxurious benefits in a vehicle that will drive up the loan amount to a number that is beyond your means.

S0 how do you do that?  We are putting together a helpful guide for any practically minded car shopper, based on our 40+ years of selling and financing used cars for practical car buyers.  In it, we cover how to use the same system we use to keep from buying poorly maintenance cars (the number one reason why people are so often dissatisfied with their car buying experience).  To learn these important car shopping tactics that will protect your credit, keep you from getting ripped off, go here:  The  Used Car Shopping Guide For The Practical Shopper