Buy Here Pay Here Dealerships – How ADD Can Help
When a borrower with bad credit is unable to secure financing through an auto lender, they may turn to buy here pay here dealerships for in-house financing. However, while a buy here pay here dealer offers convenience and can offer loans to people with no credit history or lower credit scores, this type of financing is often expensive and comes with many drawbacks.
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When you purchase a vehicle at a traditional dealership, you typically either arrange financing on your own or apply at the dealership and have the dealer shop your information to multiple lenders. At a buy here pay here (BHPH) dealership, the dealer acts as both the car seller and the lender, providing in-house financing to borrowers with poor credit. Link : buyherepayhere.io
This approach can make the buying process simpler, as you only have to deal with one person and do less paperwork. In addition, a BHPH dealership might sell used vehicles that are lower in value and may offer a wider range of cars to choose from.
On the downside, a BHPH dealership may charge higher interest rates than you might find at a bank or credit union, and they may also require that you make payments weekly or biweekly instead of monthly, which can be inconvenient for borrowers who work irregular hours. In addition, a BHPH dealer may have the right to repossess your car at any time.
Fortunately, ADD now has an electronic letter tool that can help buy here pay here dealers with the registration hold process. This easy-to-use solution allows dealers to run a Florida motor vehicle inquiry and send the initial Notice to Surrender to delinquent customers with a click of a button. To learn more, visit our ADD Online Dealership Solutions page and click the Activate Direct-Post Office tab.