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Buy Here Pay Here History explained
“Buy Here Pay Here” is a term which is often found in the used car market. It has been around for quite sometime. BHPH dealers work with people who have had credit problems in the past or have poor credit to secure auto financing. Curious to know how buy here pay here dealers got stared? How it works? Here’s a the complete details on Buy Here Pay Here History and what you can expect from visiting one of these.
History of Buy Here Pay Here Dealerships
Buy here pay here dealership has been around longer than most people may think. It wasn’t a choice and didn’t have to be an option until automobile buyers fallen into a bad credit situation. In buy here pay here history it was first hit the U.S. market during the economic downturn of the early 1970s, when unemployment was at high. It was very hard for many customers to build credit score. Ever since the economy took a dive in 2008 with the housing crash, all of the financing companies became much more choosy with their terms. You now need a 700 and above credit score to get financed from them for a newer model car and most of the times you need around $1,000 for down payment. That’s where buy here pay here comes. They focus on financing people with bad credit.
In the past, buy here pay here dealers took all sorts of things as down payments. In rural communities they took in livestock, food, goods, gold, jewellery or anything worthy for a down payment. Most of these dealers only accept cash down payments in the $99 or more range.
Buy Here Pay Here History took a back seat to franchise dealerships and weren’t mainstream until very recently. It proved beneficial to customers, sellers, and the economy in general and boosted the auto industry during what would otherwise have been an especially slow sales period. Now some bigger, franchise dealers like J.D. Byrider, Carhop, Drivetime, Carmart and local chains such as Best Car Buys have joined buy here pay here dealership game.
Now more & more peoples start to get benefit from these dealerships as the financing parameters are not that much hard, down payments get decreased. Many dealers provides cars financing under BHPH with no down payments. If you are also looking for Buy here pay here dealers, we have listed thousand of used car dealers who provides such facilities. You can find them here.
Improve credit history with Buy Here Pay Here dealerships
Previously, buy here pay here dealers don’t usually deals with the bank. They finance you for the automobile from there inventory directly. They aren’t required to report your credit history. But the banks automatically report your payments while buy here pay here dealers do not.
But things have changed now and most buy here pay here car lots report their payments to help their customers rebuild their credit profile. Not all of them do it but you should only go to the ones that do. It will help in improving your credit history.
Shopping at a Buy Here Pay Here dealer is different than at a typical used car dealer because buyers must focus more on their needs than desires. These loans are touted as an easy way for customers with bad, poor or no credit to qualify for auto financing.
The Future of Buy Here, Pay Here
After successfully helping consumers with low or no credit in need of easy-to-obtain car loans since 40 years, it seems likely that the buy here pay here industry will exist for bad credit history customers for many years to come. So whether you’re suffering from a poor credit history or simply can’t get a good loan at a traditional lender, check our list of best local buy here pay here dealers – they may just have everything you’ve been looking for.