Do you need a vehicle but are scared that your credit would prohibit you from receiving a loan to buy one, whether new or used? In that case, you may be familiar with the buy here pay here miami method of purchasing a vehicle. The goal of this approach is to make it easier for persons with less-than-perfect credit to get auto finance. This article will provide you with all the information you need to know about the BHPH system and help you decide whether it’s the best option for you.
To begin, let’s define BHPH so we’re all on the same page. Typically, while purchasing a car, one would first go to a dealership to look for a suitable vehicle, and then apply for financing at a financial institution like a bank or credit union. In a BHPH transaction, the dealership serves as both the seller and the lender. This means they not only sell the car but also arrange for the necessary finance, saving the customer time and effort.
The ease with which one may get finance is a major perk of BHPH. When a dealership handles both the sale and the financing, they may be more flexible with customers who have less-than-perfect credit. You never know; they could even lend money to those who have no credit at all.
The ability to get behind the wheel of a vehicle more quickly is yet another benefit of BHPH. You won’t have to wait for loan approval from a separate lender when the dealership handles both the selling and the financing. The time you save may be put to better use waiting for the automobile of your choice. It’s worth remembering, too, that BHPH isn’t without its drawbacks. One major drawback is that BHPH loan interest rates are usually higher than those of conventional auto loan programs. This might lead to increased final costs for the car.