Buy Here, Pay Here Dealers Matter
How many times have you driven past a ‘Buy Here, Pay Here’ auto dealer and thought to yourself, “yeah right?” Probably quite a few times, huh!?
Well, there’s an old saying; “Don’t
knock it before you try it”—heard that one, right? Within the last 5
years, Buy Here, Pay Here dealers have become the “go-to” source for used car shoppers. Due to a growing clientele, BHPH auto dealers
have also experienced a significant rise in profits. A majority of the car-buying population and
experts believe BHPH dealers and lots are ‘rip-offs’
and an abomination to the automotive sales industry due to the lack of quality
vehicles, high interest rates, and bi-weekly payments. Despite popular belief, Buy Here, Pay Here
dealers can actually be quite beneficial, so before we ‘knock-it’, let’s take a look at why we should ‘try-it’.
Aids Credit-and-Financially-Challenged
Consumers
Perhaps the biggest reason Buy Here, Pay Here dealerships
are experiencing a growth spurt is because they go above and beyond to cater to
the ‘challenged’ consumer. BHPH dealers exclusively target the
credit-challenged and financially-challenged consumer market. These are the consumers with ‘less-than-perfect-credit’ for whatever
reasons; maybe they have a withstanding repo or below-average credit
score. These consumers are usually the
9-to-5ers that work and live paycheck-to-paycheck, desperately fighting to stay
afloat, and trying to stretch every hard-earned dollar as far as they
could. By the time these consumers find
their way to a Buy Here, Pay Here dealer; they’ve already been declined,
denied, laughed-at, and shooed away by the big-name dealers, and often feel
that they’re out of options or that no one can or will help them. BHPH dealers openly welcome these consumers,
and in most cases, are able to find a dependable used car for the buyer.
Lower Down Payments
Another great reason for choosing to purchase a car from a
Buy Here, Pay Here dealer is that they typically have lower down payments,
which allows you, the consumer, to
get into your new, used car just a little bit faster. The average, or major car dealership usually
requires a minimum of $1500 or more as a down payment—sometimes this is even
with a ‘trade-in’. The average BHPH dealer only requires
approximately $500 to $1000; with the $1000 requirement only necessary in rare
cases. Many BHPH will even ‘hold’ a car for you with only a $100
security deposit, which can later be applied towards your $500 down payment—not
bad, huh!?
In-House Financing
& Payments
Now, this is the
reason Buy Here, Pay Here dealers are called, ‘Buy Here, Pay Here’, and perhaps the primary reason for their
increasing clientele. Unlike the major
auto dealers; Chevy, Toyota, Ford, GMC;
just to name a few, BHPH dealers have their own, on-site financing department
and doesn’t require mediation with a 3rd-Party lender. This enables them to make their own terms
which cater specifically to each individual consumer’s needs. There is a slight downside to this; most BHPH
dealers require bi-weekly payments instead of monthly payments like their
big-name counterparts. This is the
reason many critics argue that Buy Here, Pay Here car lots are a rip-off
because you pay twice a month for a car that is ‘allegedly’ not worth it. Seemingly, what they fail to realize
this is the norm for any industry that offers assistance to credit and
financially challenged consumers. Last
time we checked—the credit card industry does the same thing—do they not have
higher interest rates for ‘high-risk’
account holders? Slightly higher
payments are common knowledge among BHPH customers.
The Bottom Line
The bottom line is this—Buy Here, Pay Here dealers are doing
better in sales and demand than their big-name rivalries because they are home to
the ‘troubled-consumer’ market that
no one else wants—which just so happens to be a hungry, thriving market. There will always be ‘naysayers’ and critics to speak against anything; supermarkets, a
restaurant chain, Obamacare—or
whatever, so you just have to ignore them, do your own research, and make a
decision for yourself. No matter what
the critics say—the end result is that Buy Here, Pay Here dealers are helping the
people that truly need it and has been turned away by everyone else—something
the ‘big-rigs’ may want to try.
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