Auto LoansGlossary
Buy Here Pay Here (BHPH)
A dealership that finances its own customers — typically subprime — in-house.
BHPH dealers approve almost anyone but charge APRs of 18-30%+, often with weekly or biweekly in-person payments. Most consumer experts recommend exhausting all other options (credit unions, online lenders, co-signers) before BHPH.
Should you care?
Should you care about Buy Here Pay Here (BHPH)?
When you need it
Avoid unless every other lender (including subprime credit unions, online lenders, dealer-arranged) has declined you. Most BHPH lots don't report to credit bureaus, so you're not even building credit.
What it costs you
BHPH cars are priced 30-50% above market and financed at 18-25% APR. A typical BHPH buyer pays $5,000-$10,000 more than a credit-union financed equivalent over the loan term.
Put it into practice
Where Buy Here Pay Here matters on CarSavr.
Referenced in
Where Buy Here Pay Here fits in the bigger picture.
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Put it into practice