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What Is Buy Here Pay Here?

Please view Heritage Motors "What Is Buy Here Pay Here?"
Content Provided by AutoTrader.com


If you've found that every other credit avenue for financing a car is closed to you, a Buy Here Pay Here (BHPH) dealer may be your last, and best, resort.

Most of us simply can't afford to buy a car with cash. Typically, we borrow money for a car through third-party lenders, such as banks, credit unions and carmaker-associated lending companies.

For a variety of reasons, however (such as a spotty credit history, no credit or a very low credit score), traditional lenders may not work for you. If that's the case, there are always BHPH dealers.

What Is Buy Here Pay Here Financing?

BHPH financing means that you arrange the loan and make payments on it at the dealership where you purchased the car. In other words, it's a one-stop shopping process because the car dealer is also the finance company.

Because loan decisions are made by the BHPH dealer, who wants to sell you a car, approval is nearly always guaranteed. If you have an address and a steady income, your chances for approval are very good.

Granting you a loan, however, isn't out of the goodness of the dealer's heart; they will probably make as much, or more, profit on the financing as they do on the car itself. As a high-risk borrower, you can expect a double-digit interest rate.

It's helpful to find a dealer close to your home or work because, rather than mailing a monthly payment, the BHPH dealer might require you to make weekly or biweekly trips to the dealership to pay in person. Although some will accept payment online or by mail or phone, BHPH usually means physically bringing your payment to the dealership.

Differences Between BHPH Dealerships and Traditional Dealerships

Lately, the lines separating a more traditional dealership and one offering BHPH have become blurred. Some traditional new- and used-car dealerships now offer BHPH financing as an option. You might not see "Buy Here Pay Here" written across the windshields of the cars, but phrases such as "We Finance" are usually code for BHPH.

If you're having trouble getting traditional financing, start with the used-car lot at a franchised dealership, such as Chevrolet or Dodge, that advertises easy financing or rebuilding credit.

The bad news is that BHPH turns the car-shopping experience upside down. Rather than settling on a car and then talking financing, a BHPH dealer will first qualify the customer before determining how much they're willing to lend. Finally, the dealer will show the customer which cars are options to buy, and choices will probably be limited.

With BHPH, always ask about the late payment policy. Is there a grace period, and if so, how long is it? Make sure that the contract clearly spells out how long the period is between missing one of those weekly payments and repossession.

Who Should Go to a BHPH Dealership?

Your credit may well be better than you think. Always go to traditional lenders first: banks, credit unions and even finance companies. Only when every one of them has denied you should you revert to a BHPH dealer.

Benefits of BHPH

  • They put credit-challenged borrowers in a car when a traditional lender will not.
  • On-time payments can help repair your credit history (but be sure that the BHPH dealer reports payment histories to the credit bureau).
  • They buy older cars and will be more willing to take in an old beater toward the down payment of a new car.
  • What it means to you: When every traditional lender turns you down, Buy Here Pay Here dealers can help put you behind the wheel. If you think Buy Here, Pay Here is a good fit for you can your circumstance, check out our Buy Here, Pay Here page that list specific dealers and cars that are available with BHPH financing.

What it means to you: When every traditional lender turns you down, Buy Here Pay Here dealers can help put you behind the wheel. If you think Buy Here, Pay Here is a good fit for you can your circumstance, check out our Buy Here, Pay Here page that list specific dealers and cars that are available with BHPH financing.


Source: AutoTrader.com (September 2014)


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Midsize Sedan Buyers Guide

Please view the Heritage Motors Midsize Sedan Buyer's Guide: More Car for Your Money
Content Provided by KBB.com

Roomy, comfortable, efficient, tech-savvy, and sometimes even fun to drive, today's midsize sedans deliver more bang for the buck than perhaps any other category of vehicles. It's no wonder they remain among the top-selling cars in the country.


2018 Chevrolet Malibu
Starting Price: $22,555
Totally rethought for 2016, the Malibu is roomier, more stylish and more tech savvy than ever before.


2018 Ford Fusion
Starting Price: $23,090
The boldly styled Fusion continues to turn heads and win buyers with its good looks.


2018 Honda Accord
Starting Price: $24,465
All-new for 2018, this is the most advanced, most refined Accord to date.


2018 Hyundai Sonata
Starting Price: $22,935
With a low starting price and excellent warranty coverage, the roomy and feature-filled Sonata is a better and better value.



2018 Kia Optima
Starting Price: $23,495
The Optima mixes a sporty and stylish persona with established value.


2018 Mazda Mazda6
Starting Price:$23,890
Arguably the most stylish, most fun-to-drive midsize sedan, a more powerful turbocharged engine and updated styling make the Mazda6 even more appealing for 2018. 


2018 Nissan Altima
Starting Price: $24,145
Nissan's popular midsize sedan trails only Camry and Accord in annual sales.


2018 Subaru Legacy
Starting Price: $23,055
The Legacy's claim to fame remains its standard all-wheel drive, but its stellar reputation for reliability is equally compelling.


2018 Toyota Camry
Starting Price: $24,530
All-new for 2018, the venerable Camry is as easy to drive and reliable as ever, but with a new sense of style and sportiness.


2018 Volkswagen Passat
Starting Price: $23,845
The only European entry in the segment, the roomy, comfortable Passat is also a pleasure to drive. 




Best Buy
On the strength of its stellar reputation for quality and value, the 2018 Honda Accord was named the Kelley Blue Book Midsize Car Best Buy of 2018, as well as the Overall Best Buy of 2018. 

Broad Appeal
You'll find six of these midsize sedans on our most recent list of 10 Best Sedans Under $25,000 and six on our collection of 10 Most Comfortable Cars Under $30,000.

What's New
Following a relatively quiet 2017 model year for the segment, 2018 brings with it complete redesigns of both the Honda Accord and Toyota Camry. And while not a full redesign, the Hyundai Sonata has been significantly updated for 2018, as has the Mazda6.

Resale Value Recognition
The Subaru Legacy is a perennial resale value standout, and it took home our most recent Best Resale Value Award in the Mid-Size Car category. Following in the second and third spots were the Honda Accord and Toyota Camry.


Source: KBB.com (January 4, 2018)

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