Buy here pay here, or BHPH, is a type of automobile dealership where buyers are able to buy a car on credit. This is the most popular way for new car buyers to acquire their dream car. The dealership gives its customers an extended credit period to pay for their new vehicle. This method is especially convenient for people with bad credit.
This Means You Could Miss Out On A Valuable Opportunity To Improve Your Credit Score
However, there are a few things that you need to remember before purchasing a car on credit at a buy here pay here mn dealership. First of all, most of them will not accept bank account payments, money orders, or checks. This is because most of these dealerships deal with people with bad credit. In addition, you might find that your payment is unavailable when your auto-pay tries to make withdrawals.
Another disadvantage of a buy here pay here dealership is the high interest rates. Many of these dealerships have interest rates that are much higher than the average for consumers with good credit. Furthermore, the down payment that you will have to pay is higher than you would pay at a traditional used car dealership. However, it is still possible to get a car on credit at these dealerships, as long as you are able to make payments on time.
Another drawback of buy here pay here financing is that some dealers do not report your payments to the credit bureaus. You must ask the dealership about this before you make your final decision. This means you could miss out on a valuable opportunity to improve your credit score. Another downside of buy here pay here financing is that you may be limited in the type of vehicle that you can buy.